CIMAPRA19-F02-1 Exam - Topic 1 Question 1 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam

Question #: 1
Topic #: 1

[All CIMAPRA19-F02-1 Questions]

At 31 October 20X1 RS has in issue 10% debentures 20X8 with a carrying value of $350,000.

Extracts from its statement of profit or loss for the year ending 31 October 20X7 are as follows:

What is the interest cover for RS for the ended 31 October 20X7?

A9.0 times

B11.1 times

C10.0 times

D8.0 times

Show Suggested Answer

Suggested Answer: A

by Glory at May 06, 2022, 07:37 AM

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Johnetta

7 months ago

Yeah, 10.0 times seems right to me!

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Wenona

7 months ago

Wait, how can it be that high? Sounds off.

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Billye

7 months ago

I think it might be 11.1 times, though.

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Dorathy

8 months ago

I'm pretty sure it's 10.0 times.

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Eugene

8 months ago

Interest cover is calculated as EBIT divided by interest expense.

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Jamika

8 months ago

I'm pretty sure the SCD Type 2 Loader transformation is used to find row matches based on the business key, so I'll go with option A.

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Dierdre

8 months ago

I think I know how to handle this. I'll apply the techniques we've been practicing and see if I can come up with a solid solution.

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