B&B Company uses the cash basis for accounting purposes. B&B primarily performs a service; however, it does sell a significant amount of inventory. Which of the following statements is correct concerning B&B?

	a.	B&B must use the cash method to account for its inventory and must use the accrual method to account for all other transactions.
	b.	Since inventory is an income-producing factor, B&B must use the accrual basis to account for all of its transactions.
	c.	B&B must use the cash basis to account for its inventory.
	d.	Since inventory is an income-producing factor, B&B must use the accrual basis to account for its inventory but may use the cash basis for its other transactions.