Following are some ratios that a CPA might compute: Notes receivable to interest earned Notes payable to interest expense Net income to owners' equity Marketable securities to dividend income Accounts receivable to bad debts expense Unexpired insurance to insurance expense 

1. What do all these ratios have in common? 

2. Would the auditor be more likely to use them to compare current year with the preceding year(s), or to compare the client with other companies in the same industry, or both? Explain.