Purchase and payroll transactions account for the major expenses incurred by a
business, and so are a major component in the determination of profit, and also relate to the
acquisition of major classes of asset including inventories and capital assets.

Question

Quizplus · Accepted Answer

Purchase and payroll transactions are indeed major expenses incurred by a business and are related to the acquisition of major asset classes like inventories and capital assets. Hence, they do determine the profit margin of a business.

Purchase and Payroll Transactions Account for the Major Expenses Incurred