QUESTION 1 For each of the statements below, indicate whether the statement is True or False AND provide one or two explanatory sentences to support your answer. (a) Warren Buffett suggests investors be aware of companies displaying weak accounting. We can assess firms' accounting quality by looking at how much accruals capture the variation in the current cash flows. (b) The business environment analysis for Blue Sky Meats (NZ) LTD we discussed in class indicates severe problems of inefficiencies and over-capacity in the meat processing industry in New Zealand. (c) Companies' competitive forces come from within the industry as Porters Five Forces' analysis suggested. (a) Companies that adopt a cost leadership strategy sell for as low price as possible. Hence, the profitability is relatively low compared with other companies that adopt a different industry position strategy. (e) Because Air New Zealand receives revenue in advance, which is placed on deposit at banks, the interest income on the deposits is an operating item. QUESTION 1 For each of the statements below, indicate whether the statement is True or False AND provide one or two explanatory sentences to support your answer. (a) Warren Buffett suggests investors be aware of companies displaying weak accounting. We can assess firms' accounting quality by looking at how much accruals capture the variation in the current cash flows. (b) The business environment analysis for Blue Sky Meats (NZ) LTD we discussed in class indicates severe problems of inefficiencies and over-capacity in the meat processing industry in New Zealand. (c) Companies' competitive forces come from within the industry as Porters Five Forces' analysis suggested. (a) Companies that adopt a cost leadership strategy sell for as low price as possible. Hence, the profitability is relatively low compared with other companies that adopt a different industry position strategy. (e) Because Air New Zealand receives revenue in advance, which is placed on deposit at banks, the interest income on the deposits is an operating item