Which statement is accurate regarding the general preference for accrual accounting?

Credit institutions prefer it because it shows all financial components of the business, not just those involving the immediate exchange of cash.

$1$ am not sure.

Credit institutions prefer it because it shows a more accurate picture of the cash$-$generating capability of a business.

Most businesses prefer it because credit institutions are reluctant to lend to companies that prepare their statements using the cash method.

Most businesses prefer it because software designed to analyse accruals$-$based financial statements are more accurate than cash$-$based software.