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What will be the effect of transaction 'Payment of employee benefit expenses' on the cash flow statement? - Accountancy

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प्रश्न

What will be the effect of transaction 'Payment of employee benefit expenses' on the cash flow statement? 

विकल्प

  • Outflow from operating activities.

  • Outflow from investing activities.

  • Outflow from financing activities.

  • No effect on cash flow.

MCQ

उत्तर

Outflow from operating activities.

Explanation:

Employee benefit payments are categorized as a cash outflow under operating activities in the cash flow statement and are a normal aspect of business operations.

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