The correct answer is A. Cash system.
The accrual system of accounting is a method of accounting that records revenue when it is earned and expenses when they are incurred, regardless of when cash is received or paid. This is in contrast to the cash system of accounting, which records revenue when cash is received and expenses when cash is paid.
The accrual system of accounting is the preferred method of accounting for most businesses. It provides a more accurate picture of a company’s financial performance by reflecting its revenues and expenses in the period in which they occur, rather than the period in which cash is exchanged.
The cash system of accounting is simpler to use than the accrual system, but it does not provide as accurate a picture of a company’s financial performance. It is typically used by small businesses or businesses with relatively simple financial transactions.
The mercantile system of accounting is a method of accounting that was used in the early days of business. It is based on the assumption that all transactions are recorded in cash. This system is no longer used, as it is not accurate or efficient.
The receipt system of accounting is a method of accounting that records only cash receipts. This system is not accurate, as it does not record all of a company’s transactions.
The government system of accounting is a method of accounting that is used by the government. It is based on the accrual system, but it has some additional requirements, such as the use of fund accounting.