Capital employed is defined as:

Capital employed is defined as:

• A. Non-current assets + investments + current assets
• B. The total equity of the company
• C. Current assets minus current liabilities
• D. Capital employed = non-current assets + investments + current assets - current liabilities

Answer: (D)

Capital employed is the long‑term funding used to generate profits. It is measured as total assets minus current liabilities. Since total assets equal non‑current assets plus investments plus current assets, subtracting current liabilities gives non‑current assets plus investments plus current assets minus current liabilities. That matches the defined expression exactly. The other options either omit subtracting current liabilities, or represent different concepts (like only equity or net working capital), so they aren’t correct.

Capital employed is the long‑term funding used to generate profits. It is measured as total assets minus current liabilities. Since total assets equal non‑current assets plus investments plus current assets, subtracting current liabilities gives non‑current assets plus investments plus current assets minus current liabilities. That matches the defined expression exactly. The other options either omit subtracting current liabilities, or represent different concepts (like only equity or net working capital), so they aren’t correct.