Which of the following is not a proper form of the accounting equation?
Fixed assets + current assets - liabilities = capital
Fixed assests + current assests + liabilities = capital
Fixed assets – liabilities + current assets = capital
Fixed asset + current asset – capital = liabilities
Correct answer is B
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).