Final answer:
The assertion that balance sheet accounts related to payroll are normally insignificant except for labor charged to inventory is false. Payroll liabilities can be substantial and significantly impact a company's net worth which is a critical part of the balance sheet.
Step-by-step explanation:
False. The balance sheet accounts related to payroll are typically significant for most clients, not just labor charged to inventory. Payroll liabilities encompass not only the gross wages but also include taxes owed, benefits, and any withholdings. These figures can represent a substantial obligation for the company and hence are significant. Moreover, the balance sheet includes assets such as cash and investments, and liabilities like loans and mortgages. Payroll affects the net worth of a company, as it is part of the liabilities that will subtract from the total assets to determine the company's net worth.