Question

Capital employed is:

A Cash + bank balance Correct Answer Incorrect Answer
B Shareholder equity + long term funds Correct Answer Incorrect Answer
C Assets + cash Correct Answer Incorrect Answer
D Bank balance Correct Answer Incorrect Answer
E Current assets + current liabilities Correct Answer Incorrect Answer

Solution

Capital employed refers to the long term sources of funds in the company i.e. equity funds and long term liabilities.

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