For each of the statements below, indicate whether the statement is True or False.

1. Strong bargaining power of suppliers increases profitability.
3. Both Type I error and Type II error can arise when using the Altman Z-score to predict bankruptcy, but only the Type I error has costs.
5. Debtholders take security over the borrowers assets, and their maximum return is the interest rate set in the loan agreement regardless of how well the net operating assets perform.
7. All else equal, when investors consider a firms return on equity (ROE), they consider it less risky if the firm earns a higher proportion of ROE from operating activities as opposed to nonoperating activities.
9. Because a2 Milk Company places revenue received in advance on deposits at banks, the interest income on the deposits is an operating item.