Question :  Capital employed in a firm is calculated from the liabilities approach as follows

Option 1: Partner's capital – credit  balance in current account + free reserve + credit balance of profit  and loss account – Goodwill - Non trade investment – fictitious assets – all outside liabilities

Option 2: Partners capital + credit balance in current account (minus Debit balance of current account) + free reserve + credit balance  of profit and loss (if any) – goodwill – non trade investment

Option 3: Partners capital – credit balance in current account + free reserve + credit balance of profit and loss account – Goodwill – non trade investment – fictitious assets – all outside liabilities

Option 4: All assests – goodwill – Non trade investment – fictious assets – Debit  balance of profit and loss account – outsiders liabilities

Question : Capital employed in a firm is calculated from assets side approach as follows:

Option 1: All assets – goodwill – non trade investment – fictious assets – long term outside liabilities 

Option 2: All assets – goodwill – non trade investment – fictious assets – credit balance in cuirrent account – all outside liabilities

Option 3: Partners capital – credit balance in current account + free reserve + credit balance of profit a and loss account – Goodwill – non trade investment – fictious assets – all outside liabilities 

Option 4: All assests – goodwill – Non trade investment – fictious  assets – Debit  balance of profit and loss account – outsiders liabilities 

Question : To know the return on investment, by capital employed we mean:

Option 1: Current Asset - Current Liabilities

Option 2: Gross Block

Option 3: Fixed Assets + Current Assets - Current Liabilities

Option 4: Net Fixed Assets

Question : Which of the following statements is not correct?

Option 1: Net Profit before Interest and Tax = Net Profit before Tax + Interest on Long-term Borrowings

Option 2: Current Liabilities = Total Debt - Non-current Liabilities

Option 3: Capital Employed = Net Fixed Assets + Trade Investments - Working Capital

Option 4: Accumulated Depreciation is already adjusted in Net Fixed Assets.

Question : Which of the following statements is not correct?

Option 1: Net Profit before Interest and Tax = Net Profit before Tax + Interest on Long-term Borrowings

Option 2: Current Liabilities = Total Debt - Non-current Liabilities

Option 3: Capital Employed = Net Fixed Assets + Trade Investments - Working Capital

Option 4: Accumulated Depreciation is already adjusted in Net Fixed Assets.