A company's invested capital is equal to its:

Question

Quizplus · Accepted Answer

Invested capital represents the total value of capital invested in a business, which includes both equity and debt. It is calculated as Total Assets less Non-Interest-Bearing (Short-Term) Liabilities, as those liabilities do not require interest payments and therefore do not represent a cost of capital. Option A includes short and long-term assets, but not liabilities. Option B includes only operating assets and may not be a comprehensive representation of invested capital. Option D only includes long-term assets, which may not accurately reflect the total value of capital invested in the business.

A Company's Invested Capital Is Equal to Its