Target Exam

CUET

Subject

-- Accountancy Part B

Chapter

Financial Statements of a Company

Question:

Employee benefit Expenses doesn't include........

Options:

Salary and wages in Kind

Leave encashment

Interest paid on Deposit

Staff welfare expenses

Correct Answer:

Interest paid on Deposit

Explanation:

The correct answer is option 3- Interest paid on Deposit.

Interest paid on Deposit is a finance cost not employee benefit expense. 

Employee benefit expenses encompass various costs related to the compensation and well-being of employees, including salaries, wages, and additional benefits. This category includes direct monetary compensation like salaries and wages, as well as indirect benefits such as healthcare, retirement contributions, and leave encashment. These expenses are crucial for attracting and retaining skilled employees and are reported in the company's income statement.