A liquid asset can be converted to cash quickly without significantly impacting the asset's value. Which of the following asset classes is generally considered to be the most liquid? O Inventories N&B Equipment Co. O Cash Assets Accounts receivable Current assets Balance Sheet December 31st (Millions of dollars) LeBron Sports N&B LeBron Sports Equipment Inc. Equipment Co. Equipment Inc. Liabilities Current liabilities $2,296 $1,476 Accounts payable $0 840 540 Accruals 506 2,464 1,584 Notes payable 2,869 $5,600 $3,600 Total current $3,375 Cash $0 The most recent data from the annual balance sheets of N&B Equipment Co. and LeBron Sports Equipment Inc. are as follows: Accounts receivable 0 Inventories 2,700 Total current assets $2,700 liabilities Long-term bonds 4,125 3,300 Complete the following table by entering the values of the current and quick ratios for N&B Equipment Co. and LeBron Sports Equipment Inc. (Hint: Round to four decimal places. ) Net fixed assets Net plant and 4,400 4,400 Total liabilities $7,500 $6,000 equipment Ratio N&B Equipment Co. LeBron Sports Equipment Inc. Common equity Common stock 1,625 1,300 Current Quick 875 700 Retained earnings Which of the following statements are true? Check all that apply. Total common $2,500 $2,000 equity ON&B Equipment Co. has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Inc. Total assets $10,000 $8,000 $10,000 $8,000 Total liabilities and equity 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. N&B Equipment Co. has a better ability to meet its short-term liabilities than LeBron Sports Equipment Inc. An increase in the current ratio over time always means that the company's liquidity position is improving. be converted into One of the most important assumptions behind the calculation of the quick ratio is that the firm's accounts receivable cash within the time period for which credit was granted