Day: September 3, 2021

What can cause interest cover to fall?

Select ONE answer:

1. conversion of debentures into shares
2. fall in interest rates
3. fall in operating profits
4. preference share issue

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct
4. Not correct

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