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CIMAPRA19-F02-1 Exam - 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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Andrew
3 months ago
Interest cover is calculated as EBIT divided by interest expense.
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Izetta
3 months ago
Wait, how did they get 11.7 times? That seems off.
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Roxane
3 months ago
I think C is too high, not sure about that one.
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Alecia
4 months ago
I'm going with B, seems reasonable!
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Viva
4 months ago
Interest cover is a key metric for assessing financial health.
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Corrina
4 months ago
I feel like the answer is around 10 times, but I can't remember if it was closer to 10.7 or 11.7. I need to double-check my calculations!
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Gracie
4 months ago
I'm a bit unsure about how to interpret the financial statements. Did we need to adjust for any non-recurring items before calculating?
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Elliott
4 months ago
I think I practiced a similar question last week, and I got a different answer. I hope I remember the right figures this time!
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Antonio
5 months ago
I remember we calculated interest cover in class, but I can't quite recall the exact formula. Was it EBIT divided by interest expense?
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Ethan
5 months ago
I think I know how to do this. I'll start by finding the operating profit and interest expense from the financial statements, then calculate the interest cover.
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Viola
5 months ago
Hmm, I'm a bit unsure about how to approach this. Do I need to use any specific formulas or ratios?
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Terina
5 months ago
Okay, this seems straightforward. I just need to calculate the interest cover ratio using the information provided.
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Lavina
5 months ago
This looks like a standard financial analysis question. I'm confident I can work through the steps to find the correct answer.
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Gerald
5 months ago
I'm not too sure about this one. I'll have to think it through carefully.
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Karl
5 months ago
Okay, let's see. BPDU guard sounds like it could be the right answer, since it's specifically meant to protect the spanning tree from unauthorized devices. But I want to double-check the other options just to be sure.
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Hollis
5 months ago
Tricky question. I'll read carefully and remember: they want the most accurate technical definition that matches the description.
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Bo
10 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
9 months ago
Haha, that accountant joke is funny!
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Anjelica
9 months ago
I agree, option B seems like the best choice.
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Kimberlie
9 months ago
I think the interest cover is 10.7 times.
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Antonio
10 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
9 months ago
I got 9.6 times as the interest cover for the year.
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Lashawnda
10 months ago
I calculated it as 11.7 times.
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Cordelia
10 months ago
I think the interest cover for the year is 10.7 times.
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Nida
10 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
10 months ago
Great, option C it is then. Thanks for clarifying how to calculate interest cover.
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Brittni
10 months ago
I agree, let's go with option C for the interest cover for the year.
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Latrice
10 months ago
Option C does seem like the most reasonable answer based on the information provided.
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Jerlene
10 months ago
I think you're right, interest cover is calculated by dividing operating profit by interest expense.
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Kristel
11 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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Samuel
9 months ago
I don't think it's that low.
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Isaac
9 months ago
D) 8.5 times
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Nana
9 months ago
I believe it's closer to that number.
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Marylin
9 months ago
C) 11.7 times
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Twanna
9 months ago
That sounds more reasonable.
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Sherman
10 months ago
B) 10.7 times
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Gertude
10 months ago
I think it might be higher than that.
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Arlean
10 months ago
A) 9.6 times
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Nydia
11 months ago
I'm going with 11.7 times because the higher the better for interest cover.
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Kattie
11 months ago
I believe it is 9.6 times.
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Hollis
11 months ago
I think the interest cover is 10.7 times.
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