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What is the main difference between depreciation and capital loss caused by a sudden disaster?

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Answer and explanation

Correct answer: मूल्यह्रास सामान्य घिसावट और अप्रचलन से जुड़ा होता है

Depreciation is the normal and expected decline in the value or productive capacity of fixed capital because of use, wear and tear, or obsolescence. A sudden flood, fire, or similar disaster causes an exceptional capital loss rather than ordinary scheduled depreciation. Thus option A gives the relevant distinction; the other options incorrectly treat unusual damage as routine depreciation.

Related tags

DepreciationCapital-LossNormal-WearNational Income And Related AggregatesEconomicsClass 11 Mcq

Frequently asked questions

What is the correct answer to this question?

मूल्यह्रास सामान्य घिसावट और अप्रचलन से जुड़ा होता है

Why is this the correct answer?

Depreciation is the normal and expected decline in the value or productive capacity of fixed capital because of use, wear and tear, or obsolescence. A sudden flood, fire, or similar disaster causes an exceptional capital loss rather than ordinary scheduled depreciation. Thus option A gives the relevant distinction; the other options incorrectly treat unusual damage as routine depreciation.

Which subject and chapter does this question cover?

This is a Class 11 Economics question. Chapter: National Income and Related Aggregates.

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