Which of the following transactions would result in an increase in capital employed? A. Paying a tradepayable in cash B. Writing off a bad debt C. Purchasing on credit D. Repaying a loan E. Selling inventory ata profit F. Increasing the bank overdraft to purchase a non - current asset

Capital Employed means amount of capital being invested in the business. This is also known as…

Answered: Which of the following transactions…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Which of the following transactions would result in an increase in capital employed? A. Paying a trade payable in cash B. Writing off a bad debt C. Purchasing on credit D. Repaying a loan E. Selling inventory at a profit F. Increasing the bank overdraft to purchase a non - current asset