CIMA Exam CIMAPRA19-F02-1 Topic 2 Question 113 Discussion

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

Question #: 113
Topic #: 2

[All CIMAPRA19-F02-1 Questions]

Which of the following defines the calculation of interest cover?

AProfit before interest and tax divided by finance costs

BFinance costs divided by profit before interest and tax

CProfit after tax divided by finance costs

DFinance costs divided by profit after tax

Show Suggested Answer

Suggested Answer: A

by Sommer at Jul 06, 2025, 04:16 AM

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Stephaine

2 days ago

Option A seems to be the correct answer. Interest cover is a measure of a company's ability to meet its interest payments, so it makes sense to divide profit before interest and tax by finance costs.

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Valentin

7 days ago

I believe it's A because interest cover is about how well a company can pay its interest expenses.

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Franchesca

10 days ago

I'm not sure, but I think it's either A or B.

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Catarina

15 days ago

I agree with Tammara, A seems correct.

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Tammara

16 days ago

I think the answer is A.

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