1. Mismatch of costs and revenues: Cash basis does not align revenues and the costs associated with generating those revenues, which can distort the true financial performance.
2. Exclusion of unearned income and liabilities: The cash basis fails to report unearned income and liabilities, leading to an incomplete representation of the financial position.
3. Inability to track unpaid income: It does not report income that has been earned but not yet received in cash, making it difficult to track all outstanding receivables.
4. Ignorance of depreciation: The cash basis of accounting ignores the effects of depreciation, particularly on non-current assets, which affects the accurate presentation of asset values over time.

Explanation:
The cash basis of accounting records transactions only when cash is exchanged, which limits the ability to reflect the complete financial picture of an entity. It fails to recognize unpaid obligations and future revenues, making it less suitable for larger entities or those with substantial assets and liabilities.