There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the codes provided below-
Assertion: Purchase and sale of shares by a broker on behalf of customers is an operating activity.
Reasoning: The brokers charge brokerage for their services.

Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.

Cash flows arising from the purchase and sale of dealing or trading securities are classified as operating activities as it is their main revenue generating activity.