GK
ACCOUNTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
Capital employed equals
|
|
Fixed Assets + Working Capital
|
|
|
Tangible Fixed and Intangible Assets + Current Assets - Current liabilities
|
|
|
Long-term debt + Share Capital + Reserves & Surplus - Fictitious Assets - Non-business Assets
|
|
|
All of the above
|
Explanation:
Detailed explanation-1: -Capital Employed = Total assets – Outside liabilities.
Detailed explanation-2: -Calculate the total capital To calculate the total capital, subtract the current liabilities from the current assets. Current assets can include cash, inventory, and accounts receivable, while current liabilities may include taxes, interest, wages, and accounts payable.
Detailed explanation-3: -Invested capital is the amount of capital that is circulating in the business while capital employed is the total capital it has. Invested capital is, therefore, a subset of capital employed. Capital employed includes every aspect of capital in the entity, such as debts and shareholders’ capital.
There is 1 question to complete.