The components of capital employed are:
A) Shareholders fund
B) Net fixed assets
C) Non current liabilities
D) Current assets
E) Fictitious assets
Choose the correct answer from the options given below-
Answer & explanation
Correct answer: option 4
The correct answer is option 4- A & C only.
Capital employed refers to the funds invested in a business for the long term, encompassing shareholders' equity, debentures, and long-term loans. Alternatively, it can be calculated as the sum of non-current assets and working capital (current assets - current liabilities).