Which of the following is a disadvantage of using financial measures?

Using financial measures can indeed be influenced by different accounting methods, making it a significant disadvantage. Accounting methods can vary widely; for instance, one organization might use straight-line depreciation while another might choose declining balance depreciation. This variation can lead to substantial differences in reported financial results, such as profit margins and asset values, even if the underlying economic reality is similar. Thus, stakeholders might be misled if they don’t account for the effects of these differing methods, making financial comparisons between companies challenging.

The other options emphasize the advantages of financial measures rather than their drawbacks. For example, providing immediate insight without estimates highlights the clarity that financial metrics can bring. Reflecting the current market value of assets is also crucial for decision-making, as these values are often pivotal for investors and management alike. Lastly, focusing solely on cash flow underscores how certain financial measures can provide useful liquidity insights. However, these aspects do not address the core disadvantage presented by the variability in accounting practices.