Which of the following is the formula for investment assuming that total assets employed is the measure?
A) total assets available minus the sum of idle assets
B) total assets available minus the sum of idle assets and assets purchased for future expansion
C) total assets available minus assets purchased for future expansion
D) total assets minus current liabilities

Question

Quizplus · Accepted Answer

The formula for investment assuming that total assets employed is the measure is to subtract the sum of idle assets and assets purchased for future expansion from the total assets available. Option A does not consider assets purchased for future expansion, option C does not consider idle assets, and option D only considers current liabilities.

Which of the Following Is the Formula for Investment Assuming