State whether each of the following statements is true or false.
(3 marks)
True/False
(i)
A highly-geared entity will always have a higher
operating profit percentage than an ungeared entity
undertaking similar business activities
(ii)
If the average trade receivables collection period has
increased from 35 days to 45 days, this is not always
an indication of poor credit control by an entity
(iii)
If an entity purchases an item of plant and equipment
for cash during the year, this will be disclosed in the
statement of cash flows for the year as an investing
activity
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