Final answer:
The accrual accounting method is used by organizations to provide a more accurate indicator of future cash flows and overall performance compared to cash accounting, as it records revenue when earned and expenses when incurred. Hence, the correct answer is option (A).
Step-by-step explanation:
An organization uses the accrual accounting method to get a better indicator of future cash flows and overall performance than using current cash receipts and disbursements. This accounting method records revenue when it is earned and expenses when they are incurred, regardless of when the actual cash is received or paid.
For instance, if a service is provided in March but payment is not received until April, under accrual accounting, the revenue would be reported in March. This is in contrast to cash accounting, which would record the revenue in April when the cash is received. Accrual accounting provides a more accurate picture of a company's financial health because it matches revenues with the expenses that were incurred to generate those revenues.