Post Utme Bsu 2019 Accounting Question 5

Practice objective / multiple choice question 5 from the 2019 Post Utme Bsu Accounting examination.

Post Utme Bsu 2019 Accounting Objective / Multiple Choice
Question 5 POST_UTME_BSU • 2019 • ACCOUNTING • objective

A company has the following ledger accounts: 'Debentures' (₦100,000), 'Interest on Debentures' (₦10,000), and 'Profit' (₦90,000). What is the correct formula for calculating the company's interest coverage ratio?

Answer Options

A. (Interest on Debentures ÷ Profit) × 100%
B. (Debentures ÷ Profit) × 100%
Correct Answer C. (Profit ÷ Interest on Debentures) × 100%
D. (Interest on Debentures ÷ Debentures) × 100%
Correct Answer
C
Correct Option:
(Profit ÷ Interest on Debentures) × 100%

About This Question

This is Post Utme Bsu 2019 Accounting Question 5. It is one of the objective questions from the 2019 Post Utme Bsu Accounting examination.

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