46.8k views
5 votes
Which cashflow activity does the payment of employee salary classify as?

User Skalb
by
7.2k points

1 Answer

6 votes

Final answer:

Payment of employee salary classifies as an operating cashflow activity in business activities.

Step-by-step explanation:

The payment of employee salary classifies as an operating cashflow activity in business activities. Operating activities include cash inflows and outflows directly related to running the business, such as payments to suppliers, collection from customers, and payment of salaries.

User Onkar Mahajan
by
8.1k points