Question

question 13
which of the following is not a limitation of a financial benchmark?
the time value of money
timing differences
methods of calculating ratios
the inflation factor
question 14
profitability ratios are used to measure the companys ability to generate _.
profits
return on sales
income
equity

Explanation:

• Question 13: The time value of money is a fundamental concept in finance that is accounted for in financial analysis and is not a limitation of a financial benchmark. Timing differences (e.g., different fiscal years for comparison), methods of calculating ratios (inconsistent formulae across firms), and the inflation factor (distorting nominal values) are limitations.
• Question 14: Profitability ratios, such as return on assets (ROA) or return on equity (ROE), directly measure a company's ability to generate profits. Return on sales is a type of profitability ratio (not the over - arching ability measured), income is a component in some ratio calculations but not the core ability, and equity is a balance - sheet item related to solvency and ownership, not the ability measured by profitability ratios.

Answer:

• Question 13: The time value of money
• Question 14: profits