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

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Bo

2 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

18 days ago

Haha, that accountant joke is funny!

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Anjelica

20 days ago

I agree, option B seems like the best choice.

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Kimberlie

25 days ago

I think the interest cover is 10.7 times.

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Antonio

2 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

1 months ago

I got 9.6 times as the interest cover for the year.

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Lashawnda

1 months ago

I calculated it as 11.7 times.

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Cordelia

1 months ago

I think the interest cover for the year is 10.7 times.

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Nida

2 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

1 months ago

Great, option C it is then. Thanks for clarifying how to calculate interest cover.

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Brittni

2 months ago

I agree, let's go with option C for the interest cover for the year.

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Latrice

2 months ago

Option C does seem like the most reasonable answer based on the information provided.

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Jerlene

2 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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