QUESTION 41 of a business and to assess the riskiness of future loans Creditors typically use ratio analysis to evaluate the a. Operational efficiency b. Solvency O c. Financial flexibility d. Managerial competence QUESTION 42 Which of the following about liquidity ratios is true? a. Owners prefer a high current ratio O b. Creditors prefer a low acid-test ratio c. Owners prefer a very high cash balance Od. Owners and suppliers prefer a shorter (a lower number of days) accounts receivable collection period for accounts receivable QUESTION 43 Which of the following are among the typical standards used in ratio analysis? a. Industry averages. b. Budgeted ratio goals C. Ratios from a past period d. All of the above O e. All of the above