Multiple choice

The flats constructed by the real estate developers for sale are treated as

  1. fixed assets

  2. investments

  3. inventories as stock in trade

  4. non-current assets

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The flats constructed by the real estate developers for sale are held as stock in trade. So, these are treated as inventories as per AS-2 “Valuation of Inventories”.