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

Question

Quizplus · Accepted Answer

Purchase and payroll transactions are indeed major expenses incurred by a business and have a significant impact on the determination of profit. These transactions also relate to the acquisition of major classes of assets such as inventory and capital assets. Therefore, the statement is true.

Purchase and Payroll Transactions Account for the Major Expensincurred by a Business