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CIMA Exam CIMAPRA19-F02-1 Topic 1 Question 89 Discussion

Actual exam question for CIMA's CIMAPRA19-F02-1 exam
Question #: 89
Topic #: 1
[All CIMAPRA19-F02-1 Questions]

GH is a listed entity which holds equity shares in one subsidiary and one associate.

Information extracted from the most recent financial statements is as follows:

What is the interest cover for the year?

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Suggested Answer: A, B, C, D

by Eura at May 31, 2024, 01:36 PM

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Bo
1 months ago
Interest cover? That's easy, I got this! I'm going to go with option B, it just seems like the most logical choice. Hey, did you hear about the accountant who got hit by a car? He had a balance sheet.
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Charlie
14 hours ago
Haha, that accountant joke is funny!
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Anjelica
3 days ago
I agree, option B seems like the best choice.
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Kimberlie
8 days ago
I think the interest cover is 10.7 times.
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Antonio
1 months ago
Ah, this is a tricky one. I need to make sure I have the formula right. Maybe I should use a calculator to double-check my work. Better safe than sorry, you know?
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Haydee
16 days ago
I got 9.6 times as the interest cover for the year.
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Lashawnda
23 days ago
I calculated it as 11.7 times.
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Cordelia
28 days ago
I think the interest cover for the year is 10.7 times.
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Nida
1 months ago
Wait, isn't the interest cover just the operating profit divided by the interest expense? I think I'm going to go with option C, that seems like the most reasonable answer based on the information provided.
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Brittni
24 days ago
Great, option C it is then. Thanks for clarifying how to calculate interest cover.
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Brittni
30 days ago
I agree, let's go with option C for the interest cover for the year.
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Latrice
1 months ago
Option C does seem like the most reasonable answer based on the information provided.
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Jerlene
1 months ago
I think you're right, interest cover is calculated by dividing operating profit by interest expense.
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Kristel
2 months ago
Hmm, let me think about this. I'm pretty sure the interest cover is calculated by dividing the operating profit by the interest expense. This should give us a good indication of the company's ability to cover its interest payments.
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Twanna
4 days ago
That sounds more reasonable.
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Sherman
27 days ago
B) 10.7 times
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Gertude
30 days ago
I think it might be higher than that.
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Arlean
1 months ago
A) 9.6 times
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Nydia
2 months ago
I'm going with 11.7 times because the higher the better for interest cover.
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Kattie
2 months ago
I believe it is 9.6 times.
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Hollis
2 months ago
I think the interest cover is 10.7 times.
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