explain the concept net capital employed
Answers
Answer:
Generally, capital employed is presented as deducting the current liabilities from the current assets. It can be defined as equity plus loans which are subject to interest. ... It also refers to the value of all assets (fixed as well as working capital) employed in a business.
Answer:
Generally, capital employed is presented as deducting the current liabilities from the current assets. It can be defined as equity plus loans which are subject to interest. ... It also refers to the value of all assets (fixed as well as working capital) employed in a business.Simple Method to Calculate Capital Employed
Locate the Net Value of All Fixed Assets.
Add Capital Investments.
Add Current Assets.
Subtract Current Liabilities.
Difference between the two goes as follow : Capital employed means the amount that amount of capital which is to be used for acquistion of profits. ... Net assets on the other hand means all the assets of the Company minus all the outsider liabilities. It is often regarded as 'Stockholder's Equity'.
Explanation:
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