LO 7-3, 7-4, 7-5 How do payroll-related expenses affect financial statements? (Select all that apply.)

a. Payroll expenses may be allocable to work performed for a firm’s vendors.

b. Payroll expense accounts are reported on the income statement.

c. The period’s gross earnings are reported on the balance sheet.

d. Payroll expenses reduce the net income of a company.