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?

A9.6 times

B10.7 times

C11.7 times

D8.5 times

Show Suggested Answer

Suggested Answer: A, B, C, D

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

Limited Time Offer

25%

Off

Get Premium CIMAPRA19-F02-1 Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Kristel

9 days 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.

upvoted 0 times

...

Nydia

14 days ago

I'm going with 11.7 times because the higher the better for interest cover.

upvoted 0 times

...

Kattie

16 days ago

I believe it is 9.6 times.

upvoted 0 times

...

Hollis

17 days ago

I think the interest cover is 10.7 times.

upvoted 0 times

...