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Question : Amongst the following ‘payment of bonus to the employees’ by an insurance company is which type of activity?

Option 1: Operating Activity

Option 2: Investing Activity

Option 3: Financing Activity

Option 4: Both operating and Financing Activity


Team Careers360 25th Jan, 2024
Answer (1)
Team Careers360 27th 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 1.

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