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INSURANCE IN CASH FLOW STATEMENT

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ACCOUNTANT

Student

590 Points Posted on 01 February 2020

Insurance in the cash flow statement comes under operating activities or investing activities?

Replies (3)

Quick Summary

This discussion clarifies the classification of insurance payments within a cash flow statement. Generally, premiums paid for business-related insurance are considered operating activities. However, if insurance premiums are paid on behalf of the owner in a proprietorship, they are treated as drawings and fall under financing activities.

Belda Ramesh

35 Points Posted on 01 February 2020

Insurance premiums paid on goods of entity
then insurance treated under operating activity

ACCOUNTANT

Student

590 Points Posted on 02 February 2020

What about the insurance premiums paid on behalf of the owner of the entity... Will it come under finance activities sir...

Guest

Originally posted by : ACCOUNTANT
	What about the insurance premiums paid on behalf of the owner of the entity... Will it come under finance activities sir...