Question

Unforeseen obsolescence of fixed capital assets during production is:

Options

• Consumption of fixed capital

• Capital loss

• Income loss

• None of the above

Answer 1

Capital loss

Explanation:

A capital loss is a once-in-a-lifetime event. Unexpected obsolescence of fixed capital assets during production is a capital loss that can occur as a result of natural disasters, war, unexpected drops in demand, and so on.