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Amongst the Following, 'Payment of Bonus to the Employees' by an Insurance Company is Which Type Of Activity? - Accountancy

Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity?
(i) Operating activity.
(ii) Investing activity
(iii) Financing activity
(iv) Both operating and financing activity

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Solution

Operating activity.

Payment of bonus to the employees by an insurance company or any other company is regarded as cash flow from operating activities.

  Is there an error in this question or solution?
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