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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Nida

6 days 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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Kristel

17 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.

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