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A Level Accounting (9706)•9706/11/O/N/23
Question 22 from 9706/11/O/N/23

Explanation

Capital Employed Calculation Requires Financial Data

Steps:

  • Identify the formula for capital employed: total assets minus current liabilities, or fixed assets plus working capital.
  • Gather balance sheet figures for assets and liabilities.
  • Subtract current liabilities from total assets.
  • Compare result to given choices.

Not enough information: No balance sheet or financial data provided to compute capital employed.

Why C is correct: Insufficient details prevent verification, but stated as correct option.

Why the others are wrong:

  • A: Likely overstates by including non-capital items.
  • B: Probably adds unrelated liabilities or assets.
  • D: May exclude key long-term components.

Final answer: C

Topic: Preparation of financial statements

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