Unforseen Obsolescence of Fixed Capital Assets During Production Is: (Choose the Correct Alternative) - Economics

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Unforseen obsolescence of fixed capital assets during production is: (Choose the correct alternative)

a. Consumption of fixed capital

b. Capital loss

c. Income loss

d. None of the above

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Solution

The correct option is (b). Capital loss is a loss of capital which is of abnormal and nonrecurring nature because these losses are unpredictable or unforeseen. For example, loss in value of fixed assets arises because of natural calamities, thefts, accidents and unforeseen obsolescence.

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2015-2016 (March) Foreign Set 1

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PASSAGE

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The Union Finance Minister has presented a budget that seeks to accelerate the economy by balancing the impact of Corona on the economy on one hand and growing expectations of all sectors on the other. A significant increase in the allocation for Healthcare by 137% is a feature of this budget. In this budget, the expected revenue for the year 212-2022 is Rs. 34,35, 000crore and the expected expenditure is Rs. 35,83, 000 crore.

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