Accounting for IGCSE & O level - Final Statements (Section 12 - No. 46)
In a business, what does the term "capital employed" represent?
The total amount of debt the business has.
The total value of the business's assets.
The total value of the business's assets minus current liabilities.
The amount of capital invested in a business.
Explication
Capital employed in a business refers to the amount of money it can continue to use over a number of years to finance investments.