What is a notable disadvantage of the accrual method of accounting?

The accrual method of accounting is indeed known for its requirement of extensive record keeping. This method records revenues and expenses when they are earned or incurred, regardless of when cash changes hands. This means that businesses must track not only cash transactions but also accounts receivable and accounts payable, which can complicate the accounting process.

The extensive record keeping can demand significant resources in terms of time and effort to maintain accurate and complete financial records. This can pose challenges, especially for smaller businesses that may not have the personnel or tools in place to manage the complexity of accrual accounting effectively.

In contrast, options such as simplicity or acceptance by tax authorities do not apply since the accrual method is typically more complex than simpler methods like cash accounting and is a recognized practice under Generally Accepted Accounting Principles (GAAP) and accepted by tax authorities. Similarly, the statement regarding not accounting for revenue is inaccurate because the accrual method specifically aims to match revenues with the expenses incurred to generate them, ensuring a more accurate financial picture of a business's performance over a given period.