6. Indicate all correct answers. Dividends: a. Decrease net income. b. Decrease owners' equity. c. Are a business expense. (89) d. Are recorded by debiting the Dividend account. 7. The purpose of closing entries is to: a. Adjust the Retained Earnings account for the revenue, expense, and dividends recorded during the accounting period. b. Adjust daily the balances in asset, liability, revenue, and expense accounts for the effects of business transactions. c. Apply the realization principle and the matching principle to transactions affecting two or more accounting periods. d. Prepare revenue and expense accounts for recording the transactions of the next accounting period. Which of the following accounts would never be reported in the income statement as an expense? a. Depreciation expense. b. Dividends expense. c. Income taxes expense. 8. d. Interest expense