Use the following information to answer the question given \(\begin{array}{c|c} & ₦ \\ \hline \text{Net profit} & 60,000\\ \text{Total assets} & 520,000\\ \...

Assessment: WAEC SSCE - Financial Accounting - 2013 (Objective) Subject: Financial Accounting

Question 1 Report

Use the following information to answer the question given
\(\begin{array}{c|c} & ₦ \\ \hline \text{Net profit} & 60,000\\ \text{Total assets} & 520,000\\ \text{Current liabilities} & 150,000 \\ \text{Current assets} & 280,000\end{array}\)
The capital employed is
Answer Details
The capital employed refers to the total amount of capital that a company has used to generate its income or revenue. It is calculated by adding the total assets and the total liabilities of a company. In this case, the total assets of the company are ₦520,000 and the total current liabilities are ₦150,000. Therefore, the capital employed can be calculated as follows: Capital Employed = Total Assets - Current Liabilities Capital Employed = ₦520,000 - ₦150,000 Capital Employed = ₦370,000 Therefore, the capital employed in this scenario is ₦370,000.

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