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Target Exam

CUET

Subject

Accountancy

Chapter

Accounting Ratios

Question:

How capital employed is calculated?

Options:

Capital employed = Non-current assets + Working capital

Capital employed = Shareholder's funds + Non-current liabilities

Capital employed = Non-current assets + current assets - current liabilities

All of these

Correct Answer:

All of these

Explanation:

Capital Employed = Non-Current Assets + Working Capital (Current Assets– Current Liabilities)
Capital Employed = Shareholders’ Funds + Non-current liabilities
It is calculated to evaluate the total capital employed by the investors in any business for the realization of profits.

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