Veronica is an experienced staff auditor in charge of performing tests over equity accounts. According to the audit program, Veronica is supposed to utilize analytical procedures over the equity balances using various financial ratios.

Required:
a. Which equity and related accounts should Veronica test?
b. List 4 ratios relating to equity accounts that Veronica can use in her analytical procedures. Describe the information that each ratio provides and how this is useful evidence for the financial statement audit.