Which accounting method is considered an alternative to the accruals concept?

The correct answer is cash accounting, which serves as an alternative to the accruals concept in accounting.

The cash accounting method recognizes revenues and expenses at the time cash is actually received or paid, rather than when they are incurred or earned. This approach simplifies financial reporting by focusing on the immediate cash flow situation of the business, making it particularly beneficial for small businesses or individuals who have straightforward financial activities and need to keep track of their cash position.

In contrast to the accrual accounting method, which records revenues when earned and expenses when incurred regardless of when cash transactions occur, cash accounting presents a more immediate picture of liquidity. This distinction allows users of financial statements prepared under cash accounting to easily understand the cash available at any given time, although it may not provide a complete view of the company's long-term financial health.

The other methods mentioned—double-entry accounting, accrual basis accounting, and fund accounting—do not serve as alternatives to the accruals concept. Double-entry accounting is a systematic method that ensures every financial transaction is recorded in at least two accounts, which helps maintain the accounting equation. Accrual basis accounting adheres strictly to the accruals concept. Fund accounting is primarily used by non-profit organizations and government entities to track resources