MCQ

Net assets are the total assets owned by an organization after deducting all its liabilities to outsiders as well as its stakeholders. While capital employed means how much funds or capital a business organization has invested to generate returns.Some consider capital employed as long-term liabilities plus share capital plus profit and loss reserves. In this circumstance, net assets employed is always equal to capital employed.So ALL assets - ALL liabilities gives Net Assets and this value is equal to closing capital since it is the reflection at an ended point in time.

prasad B

CA Final

★ 3K+

22-Apr-22 11:09

There is no standard definition of some financial ratios. If you consider net assets as total assets - outside liabilities, then net assets = capital.

CA Suraj Lakhotia

Admin

22-Apr-22 19:52