Does “EBITDA / total debt” actually come up in the AAT exams?

aat2200aat2200 Registered Posts: 23
So I’m using Osbourne books. And one of the ratios in there is “EBITDA/total debt” (EBITDA meaning earnings before interest, tax, depreciation and amortisation). This is the first time I’ve saw this one, and I just wondered does this actually come up in the exam?

Answers

  • RackoonRackoon Registered Posts: 5
    Hello AAT 2200 could you please let us know in which paper (book) you read this?
    I am currently studying AAT having passed all papers for Level 2 and Level 3 except (Management Accounting and the synopsis). So I am unable to talk about Level 4 papers. In the Level 2 and Level 3 exams didn't come anything up that was related to EBITDA.
  • CornishPixieCornishPixie Registered, MAAT, AATQB, AAT Licensed Accountant Posts: 24
    It came up in my exam so keep a mental note to revise which parts of the financial statements you use to get the correct answer.
    aat2200
  • aat2200aat2200 Registered Posts: 23
    Rackoon said:

    Hello AAT 2200 could you please let us know in which paper (book) you read this?
    I am currently studying AAT having passed all papers for Level 2 and Level 3 except (Management Accounting and the synopsis). So I am unable to talk about Level 4 papers. In the Level 2 and Level 3 exams didn't come anything up that was related to EBITDA.

    It came up in Credit Management Osbourne book for level 4. I had not heard of it in level 2 or 3 either..
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