Assertion (A): Depreciation is also termed as Consumption of Fixed Capital
Assertion (A): Depreciation is also termed as Consumption of Fixed Capital.
Reason (R): Depreciation refers to that value of fixed capital which is used up in the process of production.
Alternatives:
(a) Both Assertion (A) and Reason (R) are True and Reason (R) is the correct explanation of Assertion (A)
(b) Both Assertion (A) and Reason (R) are True and Reason (R) is not the correct explanation of Assertion (A)
(c) Assertion (A) is True but Reason (R) is False
(d) Assertion (A) is False but Reason (R) is True
Ans – (a)
Explanation:-
Assertion (A): It’s true, depreciation is also termed as consumption of fixed capital.
Reason (R): It’s true, that depreciation refers to the value of fixed capital which is used up in the process of production.
Reason (R) is the correct explanation of Assertion (A)