Payroll expenses reduce
A) net income on the income statement.
B) stockholder's equity on the balance sheet.
C) stockholder's equity on the statement of stockholder's equity.
D) All of these answer choices are correct.

Question

Quizplus · Accepted Answer

Payroll expenses reduce net income as they are an expense on the income statement. This reduction in net income decreases retained earnings, which is a component of stockholder's equity on both the balance sheet and the statement of stockholder's equity.

Payroll Expenses Reduce