Accounting for IGCSE & O level - Final Statements (Section 14 - No. 31)

What does the term "capital employed" include?
The amount of capital invested in a business.
The amount of money borrowed to finance non-current assets.
The amount of money borrowed to finance current assets.
The working capital of the business.

Explanation

Capital employed includes both the equity invested and the long-term liabilities used to finance the business.

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