Question : To know the return on investment, by capital employed we mean:
Option 1: Current Asset - Current Liabilities
Option 2: Gross Block
Option 3: Fixed Assets + Current Assets - Current Liabilities
Option 4: Net Fixed Assets
Correct Answer: Fixed Assets + Current Assets - Current Liabilities
Solution : Capital Employed = Total Assets – Current Liabilities Total Assets are the total book value of all assets whether fixed or current asset.
Hence the correct answer is option 3.
Question : Which of the following statements is not correct?
Question : What ratios are affected by "Return on Investment"?
Question : Capital employed in a firm is calculated from the liabilities approach as follows:
Question : Net Profit after Tax: Rs.6,50,000; 12.5% Convertible Debentures: Rs.8,00,000; Income Tax: 50%; Fixed Assets at cost: Rs.24,60,000; Depreciation Reserve: Rs.4,60,000; Current Assets: Rs.15,00,000; Current Liabilities: Rs.7,00,000. Return on capital employed will be
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