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Which of the following is not a proper form of the accounting equation

Which of the following is not a proper form of the accounting equation
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  • A Fixed assets + current assets - liabilities = capital
  • B Fixed assests + current assests + liabilities = capital
  • C Fixed assets – liabilities + current assets = capital
  • D Fixed asset + current asset – capital = liabilities
Correct Answer: Option B
Explanation:
The simplest presentation of capital employed is total assets minus current liabilities. Sometimes, it is equal to all current equity plus interest-generating loans (non-current liabilities).

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