GENERAL KNOWLEDGE

GK

ACCOUNTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
For the purpose of calculating ROI capital employed means
A
Gross Block
B
Net Fixed assets
C
Current assets - current liabilities
D
Fixed assets + current assets - current liabilities
Explanation: 

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.

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