Question : Amongst the following ‘payment of bonus to the employees’ by an insurance company is which type of activity?
Option 1: Investing Activity
Option 2: Operating Activity
Option 3: Financing Activity
Option 4: Both operating and Financing Activity
Answer (1)
15th Jan, 2024
Correct Answer: Operating Activity
Solution : Bonus payments made to employees by insurance companies or other businesses are counted as operating cash flow.
Hence the correct answer is option 2.
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