The fixed and current assets of a business are called?
Answer Details
The fixed and current assets of a business are called "capital employed".
Capital employed refers to the total value of the assets that a company uses to generate revenue. This includes both fixed assets, such as property, plant, and equipment, and current assets, such as inventory and accounts receivable. The term "capital employed" is used to distinguish these assets from other types of capital, such as authorized or called-up capital, which refer to the amount of money that investors have contributed to the company.
Knowing the amount of capital employed is important for understanding a company's financial performance, as it indicates how efficiently the company is using its resources to generate profits. Companies that can generate more revenue with the same amount of capital employed are generally considered more efficient and profitable.