Which of the following statements are true? Check all that apply. Jing Foodstuffs Inc. has a better ability to meet its short-term liabilities than N&B Equipment Co. A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities. An increase in the quick ratio over time usually means that the company’s liquidity position is improving and that the company is managing its short-term assets well. Compared to N&B Equipment Co., Jing Foodstuffs Inc. has less liquidity and a lower reliance on outside cash flow to finance its short-term obligations. An increase in the current ratio over time always means that the company’s liquidity position is improving. One of the most important assumptions behind the calculation of the quick ratio is that the firm’s accounts receivable be converted into cash within the time period for which credit was granted.