JAMB - Accounts Principles Of Accounts (2015 - No. 19)
Which of the following is not a proper form of the accounting equation
fixed assets + current assets - liabilities = capital
fixed assests + current assests + liabilities = capital
fixed assets – liabilities + current assets = capital
fixed asset + current asset – capital = liabilities
Explanation
The simplest presentation of capital employed is total assets minus current liabilities. Sometimes, it is equal to all current equity plus interest-generating loans (non-current liabilities).
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