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What is the capital employed?

Commerce
JAMB 2006

What is the capital employed?

  • A. N 200 000
  • B. N 340 000
  • C. N 170 000
  • D. N 300 000
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Correct Answer: Option B
Explanation

Capital employed = total assets - current liabilities

Total assets = fixed assets + investments + current assets + fictitious assets = 370,000

Current liabilities = 30,000

Capital employed = 370,000 - 30,000 = 340,000

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