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Question : Payment of Income tax is classified under :

Option 1: Operating activity

Option 2: Financing activity

Option 3: Investing activity

Option 4: None of the above


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 21st Jan, 2024

Correct Answer: Operating activity


Solution : Income tax is categorised as an operating activity because it is paid as part of conducting/operating business. 

Hence the correct answer is option 1.

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