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
Answer (1)
22nd Jan, 2024
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.
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