Which of the following is included in the employment benefit expenses while preparing statement of profit and loss of a company?
A) Salaries
B) Medical expenses
C) Conveyance expenses
D) Gratuity paid
E) Business promotion expenses
F) Contribution to provident fund

ABDF

The correct answer is option 2- ABDF.

A) Salaries- EMPLOYEE BENEFIT EXPENSE
B) Medical expense- EMPLOYEE BENEFIT EXPENSE
C) Conveyance expenses- OTHER EXPENSE
D) Gratuity paid-EMPLOYEE BENEFIT EXPENSE
E) Business promotion expenses-OTHER EXPENSE
F) Contribution to provident fund-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 as a part of the overall operating expenses.