What is the percentage of equity to the total capital employed?

By: |Published on: Aug 20|Categories: Accounting WAEC| 0 comments

Use the following information to answer the given question:

Issued capital……………..100,000
Ordinary shares…………….40,000
Preference shares…………..30,000
Reserves…………………..10,000
Debentures…………………60,000
Current……………………150,000
Fixed assets……………….90,000
Current assets……………..240,000

What is the percentage of equity to the total capital employed?

A. 42%
B. 12%
C. 56%
D. 59%
E. 63%

Correct Answer:

Option B – 12%

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