Multiple choice

Which of the following is an item of non - operating activity?

  1. Payment of wages to labourers

  2. Cash payment to suppliers of goods

  3. Cash payment to acquire fixed assets

  4. Cash payment of octroi
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C Correct answer
Explanation

It is an item of non - operating activity. Since the payment is made to acquire or purchase fixed asset, which is not the principal revenue earning activity of the business.

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