CBSE BOARD XII, asked by ishu129639, 1 year ago

how to calculate capital employed ​

Answers

Answered by divya14321
0

Answer:

Total Assets: it is the total amount of assets owned by a business entity or an individual. Assets are items of economic value, which are expended over time to yield a benefit for the owner. If the assets are is a business, these assets are usually recorded in the accounting records and appear in the balance sheet as either current assets or long-term assets. Few categories in which assets can be classified are Cash, Marketable securities, Inventory, Accounts receivable, Prepaid expenses, Fixed assets, Intangible assets, etc.

Current Liability: it is a company’s obligation that is due within a period of one year or in an operating cycle. Moreover, current liabilities are paid by using a current asset, such as cash, or by new current liability. Current liabilities appear on the company’s balance sheet and can be classified as short-term debt, accrued liabilities, accounts payable, etc.

Non-Current Assets: it is the company’s long-term investments for which the total is not realized within an accounting year. Examples of noncurrent assets are plant & machinery, property, patents & investments in other companies, etc. Noncurrent assets appear in the company’s balance sheet.

Working Capital: it is the difference between Current assets & current liabilities. It is used in the day-to-day operations and transactions of the company.

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