Determination of National IncomeMCQPYQ - July 2021 (Inter)Question 118 of 116
All Questions

Depreciation is also known as:

Select Your Answer (Keyboard: A, B, C, D)
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Correct Answer

✅ Option b — Consumption of fixed capital

All Options:

  • ACapital loss
  • BConsumption of fixed capital
  • CInvestment
  • DSubsidy

Detailed Solution & Explanation

PYQ - July 2021 (Inter)

About This Chapter: National Income

Paper

Paper 4: Business Economics

Weightage

15%

Key Topics

Aggregates, Measurement, Keynesian Theory

A crucial chapter covering national income aggregates like GDP, GNP, NDP, NNP, and the methods of measuring national income (Income, Expenditure, and Output methods). It also introduces Keynesian Theory including the concepts of Aggregate Demand, Consumption Function, and the Multiplier.

View Official ICAI Syllabus

Exam Strategy Tip

Practice numerical questions on GDP/GNP calculations and the Multiplier. These are guaranteed marks in every exam. Also understand the circular flow of income clearly.

Key Concepts to Understand

Depreciation

Allocation of the cost of a tangible fixed asset over its useful life due to wear and tear, efflux of time, or obsolescence.

Related Comparison Tables

Trading Account vs P&L Account: Final Accounts ExplainedFIFO vs LIFO Inventory Valuation: CA Foundation AccountsGDP vs GNP: National Income Accounting for CA Foundation

More Questions from Determination of National Income

National Income usually refers to:

Transfer payments are:

Which method is also known as the "Value Added Method"?

GDP deflator is used to measure:

Personal Income minus Direct Taxes equals:

Keynesian consumption function expresses relationship between:

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