CIMA Exam CIMAPRA17-BA3-1 Topic 1 Question 105 Discussion

Actual exam question for CIMA's CIMAPRA17-BA3-1 exam

Question #: 105
Topic #: 1

[All CIMAPRA17-BA3-1 Questions]

GG has the following statement of profit or loss extract for the year ended 31 December 20X3

What is the interest cover for GG for the year ended 31 December 20X3?

A2.8 times

B4.0 times.

C4.5 times

D3.5 times

Show Suggested Answer

Suggested Answer: B

by Olive at Jan 11, 2025, 12:59 PM

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Louvenia

2 months ago

This question is like a game of financial Tetris! I'm going to have to carefully piece together the information to get the right answer. Maybe I'll try juggling the numbers to see if they line up with any of the options. (Spoiler alert: I'm not a fan of juggling.)

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Gabriele

2 months ago

Wow, this question is a real head-scratcher! I'm tempted to go with B) 4.0 times, but I can't shake the feeling that C) 4.5 times is the way to go. Maybe I should ask the instructor for a hint - or a calculator!

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Vilma

1 months ago

User 2: I agree, let's go with B) 4.0 times.

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Mozell

1 months ago

User 1: I think B) 4.0 times is the best choice.

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Zoila

2 months ago

I'm going with D) 3.5 times. The numbers in the statement of profit or loss don't quite add up to the other options, and this one seems to fit better.

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Celia

28 days ago

I agree with you, D) 3.5 times makes sense. The numbers seem to support that calculation.

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Sanda

1 months ago

I'm leaning towards B) 4.0 times. It looks like a reasonable estimate based on the figures provided.

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Cherri

1 months ago

I think it might be A) 2.8 times. The interest cover calculation seems to align with that number.

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Hoa

2 months ago

Well, I believe it's important to consider both the interest expense and the operating profit to get the accurate interest cover ratio.

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Albert

2 months ago

I disagree, I calculated it to be 3.5 times.

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Alonso

2 months ago

Hmm, I'm not so sure. The question is a bit tricky, but I think the correct answer is C) 4.5 times. The interest cover formula seems straightforward, but we should double-check our work.

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Clay

2 months ago

I think the answer is B) 4.0 times. The interest cover is calculated by dividing the operating profit by the finance costs, and based on the given information, the answer appears to be 4.0 times.

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