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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Albert

3 days ago

I disagree, I calculated it to be 3.5 times.

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Alonso

5 days 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

6 days 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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Hoa

10 days ago

I think the interest cover for GG is 4.0 times.

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