GK
ACCOUNTING
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Gross Block
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Net Fixed assets
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Current assets - current liabilities
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Fixed assets + current assets - current liabilities
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Detailed explanation-1: -Capital employed is calculated by taking total assets from the balance sheet and subtracting current liabilities, which are short-term financial obligations.
Detailed explanation-2: -Capital Employed = Fixed Assets + Working Capital Examples are property, plant, and equipment (PP&E). Working Capital is the capital available for daily operations and is calculated as current assets minus current liabilities.
Detailed explanation-3: -"Capital Employed = Total Assets-Current Liabilities” or “Capital Employed = Non-Current Assets + Working Capital."read more can be found on the balance sheet of the company.
Detailed explanation-4: -Return on capital employed – sometimes referred to as the ‘primary ratio’ – is a financial ratio that is used to measure the profitability of a company and the efficiency with which it uses its capital. Put simply, it measures how good a business is at generating profits from capital.