AIWMI CCRA-L2 Exam - Topic 5 Question 10 Discussion

Actual exam question for AIWMI's CCRA-L2 exam

Question #: 10
Topic #: 5

During FY13, Small Bazar, a leading retail company has sold three of its prime properties for a sum of USD 24 Million. The same had a carrying value of USD 30 Million.

Analyst had considered the same as operating income and considered it to be part of operating expenses.

However, she realized her mistake and recorded the loss as non-operating loss. Which of the following ratio will not change despite the correction?

A) EBITDA Margins

B) Interest Coverage

C) PAT Margins

D) Gross Profit Margin

AB, C & D

BA, B & C

CB, C

DAll Ratios will change

Show Suggested Answer

Suggested Answer: B

by Flo at May 04, 2022, 01:51 AM

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4 months ago

EBITDA Margins won't change, that's correct!

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Vivan

4 months ago

Surprised they initially recorded it wrong!

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Sabra

4 months ago

I thought operating income included all sales?

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Cecily

5 months ago

That loss being non-operating makes sense.

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Ligia

5 months ago

Small Bazar sold properties for $24M, carrying value was $30M.

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Lenna

5 months ago

Based on the information provided, I'd say the most likely issue is that there's no Identification Rule defined for Tomcat. That would prevent the connection from being detected.

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Evangelina

5 months ago

Okay, I've got this. The QA group is responsible for ensuring program changes adhere to standards, so I'm going to go with option A.

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