Which Following Statement Regarding Investment Property Is True

question 1

Multiple Choice

Which following statement regarding investment property is true?

• A)Investment property is property held to earn rentals from outside parties or held for capital appreciation.
• B)Investment property includes property that is owner occupied and used or leased for use in the business.
• C)Investment property includes property held as inventory such as a homebuilder.
• D)U.S.GAAP and IFRS both specifically address this type of property in the standards.

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Definitions:

Retail Inventory Method

A method of valuing inventory based on the retail price of goods, used primarily in retail sectors for inventory estimation.

Average Cost Retail Inventory Method

An inventory costing method that values inventory at the average cost of goods available for sale during the period, used to estimate the inventory's cost and ending inventory value.

Cost-to-retail Percentage

A method used to estimate the ending inventory value under the retail inventory method, calculated by dividing the cost of goods available for sale by the retail price of the goods.

Employee Discounts

Reductions in price offered to employees of a company as a benefit or perk, which can apply to products or services offered by the employer.