Question: Question 3 [15 marks] a. What are the steps that a company can institute if its growth rate is greater than the sustainable growth rate?

Question 3 [15 marks] a. What are the steps that a company can institute if its growth rate is greater than the sustainable growth rate? [5 marks]

b. Give four examples of important assets, liabilities or transactions which may not be shown on the companys balance sheets. [2 marks]

c. How does investment in Research and Development (R&D) distort accounting ratios? Give at least two examples. [3 marks]

d. Discuss the three ways in which inflation can distort recorded financial performance/ Inflation impacts a companys financial statements and performance in three distinct ways.

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