Question

(Macro-economics)
State, whether the given statement is true or false : VI
Unexpected obsolescence is a component of depreciation.'​

Answer 1

Answer:

false

Explanation:

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Answer 2

False. Only "expected obsolescence" is regarded as a component of depreciation. for example, Value Loss of fixed assets because of unexpected obsolescence is referred to as capital loss

Explanation:

• "Depreciation" is caused by physical deterioration, the usual wear and tear which takes place with use over time, while "obsolescence" as a result of better or cheaper availability of things or because of changes in requirements or preferences
• "Expected obsolescence" is the expected damage of fixed property which occurs in a period of time and "unexpected obsolescence" is the damage of fixed property that we do not know of is unlikely to occur.Provision can be made in expected obsolescence however not for unexpected obsolescence

To know more

Depreciation is result of Usage. Time. Obsolescence. all of the above.

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