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Question
What is the difference between Total Assets and Current Liabilities?
Options
Total Liabilities
Shareholders' Funds
Total Debt
Capital Employed
Solution
Capital Employed
Explanation:
Total Assets = Non-Current Assets + Current Assets
Total Liabilities = Shareholder's fund + Non-Current Liabilities + Current Liabilities
Total Assets = Total Liabilities
Total Assets = Shareholders' Funds + Non-Current Liabilities + Current Liabilities
Total Assets − Current Liabilities = Shareholders Funds + Non-Current Liabilities
Total Assets − Current Liabilities = Capital Employed
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