Question: 1. Which ratio best measures a company's success in earning net income(NI) for its owner(s)?
(a) Profit margin.
(b) Return on common stockholders' equity.
(c) Price-earnings ratio.
(d) Dividend yield.
2. Answer each of the following related to international accounting and analysis.
a. Identify an advantage to using horizontal and vertical analyses when examining companies reporting under different currencies.
b. Identify a limitation to using ratio analysis when examining companies reporting under different accounting systems such as IFRS versus U.S. GAAP.