Final answer:
The option not being an advantage of accrual accounting is 'Highlights cash effects of operations'. This is because accrual accounting focuses on long-term financial performance rather than immediate cash flows, which is a characteristic of cash accounting.
Step-by-step explanation:
The option that is not an advantage of accrual accounting is b. Highlights cash effects of operations. While accrual accounting does a good job of matching revenues and expenses to the time periods in which they are incurred, thereby providing a better picture of long-term performance and recognizing assets and liabilities, it does not specifically focus on the cash effects of operations. This is instead a strength of cash accounting, which records transactions when cash actually changes hands, making it easier to see the immediate financial stand of a business.
One significant advantage of accrual accounting is that it spreads out the influence of one-time events over multiple periods, thus reducing volatility in reported earnings. Additionally, it captures long-run performance by aligning revenue with the expenses incurred to generate that revenue over the same period. Finally, accrual accounting recognizes assets and liabilities associated with receivables and payables, which is not typically a feature of cash accounting.