A. fixed assets + current assets – liabilities = capital
B. fixed assests + current assests + liabilities = capital
C. fixed assets – liabilities + current assets = capital
D. fixed asset + current asset – capital = liabilities
Correct Answer:
Option B – fixed assests + current assests + liabilities = capital
Explanation
The simplest presentation of capital employed is total assets minus current liabilities. Sometimes, it is equal to all current equity plus interest-generating loans (non-current liabilities).
