alleryStart learning →AS 13 treats an asset as an investment when it is held mainly to:
Aearn income or capital appreciation
Bmanufacture goods for resale
Cmeet daily operating needs
Dsettle trade payables quickly
Answer & Solution
Correct answer: A. earn income or capital appreciation
Investments are held for dividends, interest, rentals or capital appreciation rather than for operations or trading.
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