Roy Cooper: “That is exactly right. Modern accounting is required of all businesses in America with revenues over $5 million. That…”

“That is exactly right. Modern accounting is required of all businesses in America with revenues over $5 million. That basically says any business larger than, say, a single McDonald's would be required to use modern accrual accounting. And lest anyone not hear the word correctly, ``accrual'' has nothing to do with the word ``cruel.'' In fact, accrual accounting is probably the kindest form of accounting because it remembers our elderly and sick and disabled. Cash accounting tends not to do that. So modern accrual accounting is a very important innovation in accounting. All our businesses have used it for years. In fact, generally accepted accounting principles, GAAP accounting, really says that all businesses of every size should use accrual accounting because it is a more accurate picture of where we are. As the gentleman knows, because he has a business background himself, the saying in business is if you can't measure it, you can't manage it. If you can't measure it, you can't manage it. That is what accounting does, it helps us measure our financial situation. This shows a picture of our financial situation. I hope it is clear. Maybe I should come down to the gentleman's easel. This is a very important chart because it shows us in clear perspective the difference between the budget numbers calculated on a cash basis and on an accrual basis. This top number of $319 billion is the cash deficit for the year 2005. That is a lot of money.…”