The following information pertains to Wolfe Company

-Which of the following is NOT a possible definition of invested capital?
A) Total assets.
B) Total assets less current liabilities.
C) Total assets less long-term liabilities.
D) Total assets less total liabilities.

Question

The following information pertains to Wolfe Company
 
-Which of the following is NOT a possible definition of invested capital?
A) Total assets. 
B) Total assets less current liabilities. 
C) Total assets less long-term liabilities. 
D) Total assets less total liabilities.

Quizplus · Accepted Answer

Invested capital is typically defined as total assets minus current liabilities (option B) or total assets minus total liabilities (option D). Option C, total assets less long-term liabilities, does not align with common definitions of invested capital.

The Following Information Pertains to Wolfe Company