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Definition

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FM Exams › Definition

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  • August 21, 2021 at 9:55 am #632394
    Nercia@1234
    Participant
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    Is there a difference between capital employed and long term capital employed

    August 21, 2021 at 4:17 pm #632429
    John Moffat
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    Strictly speaking capital employed would be the total of long-term capital and short-term capital (i.e. overdraft finance).

    However, generally in the exam any mention of capital employed (such as return on capital employed) is referring to long-term capital.

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