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Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity? - Accountancy

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Question

Amongst the following, 'Payment of bonus to the employees' by an insurance company is which type of activity?

Options

  • Operating activity

  • Investing activity

  • Financing activity

  • Both operating and financing activity

MCQ
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Solution

Operating activity

Explanation:

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

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2014-2015 (March) All India Set 2
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