Question 37

For the year ending March 2020, a company hadthe following Balance Sheet totals:

Profit (after tax) 160,000

Tax Expense 56,000

Interest Expense 24,000

Equity (start) 760,000

Equity (end) 840,000

Calculate the Interest Cover ratio

A 9 times

B No answer is correct

C 6.7 times

D 10 times

Question 38

When a customer does not pay what they owe to a business, the amount they will not pay is called...

A Prepayments

B Dividends

C Bad debts

D Accruals