Company Profitability Decreases in Direct Proportion to the Payroll Expenses

question 21

Multiple Choice

Company profitability decreases in direct proportion to the payroll expenses.Why?

• A) Because payroll represents a liability and an expense of the business. The higher payroll expenses are, the lower the profitability will be.
• B) Because payroll represents an asset and an income of the business. The higher payroll income are, the higher the profitability will be.
• C) Because payroll represents a liability and an expense of the business. The lower payroll expenses are, the lower the profitability will be.
• D) Because payroll represents an asset and an income of the business. The lower the payroll expenses are, the higher the profitability will be.

---

Definitions:

Myopia

A common vision condition also known as nearsightedness, where distant objects appear blurred while close objects can be seen clearly.

Accommodation

In psychology, the process of adjusting one's schemas and perceptions to incorporate new information.

Retina

A layer of cells at the back of the eye sensitive to light, which triggers nerve impulses that pass via the optic nerve to the brain, where a visual image is formed.

Cones

Cones are photoreceptor cells in the retina of the eye that function best in bright light and are responsible for color vision and visual acuity.