A distinguishing feature of investment property is that it
A) appreciates faster than other property.
B) generates cash flows independently of other assets held by the entity.
C) is easily sold on independent markets.
D) is accounted for at the lower of cost or net realizable value.

Question

Quizplus · Accepted Answer

Investment property is characterized by its ability to generate cash flows largely independently of the other assets held by the entity. This distinguishes it from other types of assets that might not have this capability.

A Distinguishing Feature of Investment Property Is That It