23. Which statement is incorrect? a. Dividends represent a distribution by a corporation to its stockholders. < b. Dividends are shown on the income statement. < c. Dividends reduce stockholders' equity, thus the Dividends account increases on the left side. < d. The Dividends account has a normal debit balance. < AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Reporting 24. Why are expenses increased with a debit? < a. They are always paid by cash, which is credited. Thus expenses are debited. < b. They decrease stockholders' equity thus they increase with a debit. < c. They have the same rules of debits and credits as the retained earnings account. < d. None of the statements are correct. < AACSB: None, AICPA BB: Legal/Regulatory Perspective, AICPA FN: Reporting, AICPA PC: None, IMA: Business Economics <