passwella.
Menu

JAMB Commerce 2008 Question 13

Question 13

Business Finance

The components of capital employed in a business are

  1. A.owners' equity and long-term debts
  2. B.total assets and current liabilities
  3. C.share capital and long-term debts
  4. D.share capital and current liabilities.
Show the answer and explanation

Answer: A (owners' equity and long-term debts)

Explanation

Capital employed = total assets − current liabilities, which is the same as owners' equity plus long-term borrowing.