Which of the following is not a proper form of the accounting equation
-
A.
fixed assets + current assets – liabilities = capital -
B.
fixed assests + current assests + liabilities = capital -
C.
fixed assets – liabilities + current assets = capital -
D.
fixed asset + current asset – capital = liabilities
Correct Answer: Option B
Explanation
The simplest presentation of capital employed is total assets minus current liabilities. Sometimes, it is equal to all current equity plus interest-generating loans (non-current liabilities).