Concept:Accounting bases refer to the methods used to record financial transactions in the books of an enterprise.
Explanation:The two recognised accounting bases are the cash basis and the accrual basis.
Under the cash basis, income and expenses are recorded only when cash is actually received or paid.
Under the accrual basis, income and expenses are recorded when they are earned or incurred, regardless of when cash changes hands.
Most formal financial statements are prepared using the accrual basis because it gives a more accurate picture of financial performance.
The cash basis is often used by small businesses and for certain tax purposes.
These two bases are the recognised alternatives for applying accounting concepts to financial transactions.
Answer:C. Accrual and Cash