Question

which of the following asset is excluded while calculated capital employed for the purpose of calculation of goodwill​

Answer 1

Answer:

the non- trading assets like investment , disinvestment are excluded to calculate capital employes

Answer 2

Answer:

Non-trading assets, like Investment is excluded while calculated capital employed for the purpose of calculation of goodwill​

Explanation:

Non Trade investments are those which are not related to the central operations of the organization however are made to procure a return equivalent to or more than the risk-free rate out of excess money accessible. Capital employed is the cash that has been put resources into the central operations of the organization. Consequently to calculate Capital Employed Non- Trade assets are deducted.

At the time of calculating the goodwill of a firm, it is vital to learn the value of Capital employed, since the profit of a firm can be supported in terms of capital employed only.

Capital employed might be figured with the assistance of the accompanying:

Capital Employed = Fixed Assets (at the revalued figure however excluding non-trading assets, like Investment) + Current Assets (at market value) - Current Liabilities.