In a study session a classmate makes this statement Dividends are listed as expenses on the income statement. What is your best response to this statement? o I've been struggling with that concept and I feel that dividends should be shown on the balance sheet as assets. O Dividends are deducted from retained earnings on the balance sheet. O Dividends represent a portion of corporate profts paid to the shareholders. They belong on the retained earnings statement O You are right. Revenues and expenses are shown on the income statement. Dividends are a cost of generating revenues and that makes them an expense. Why else would a corporation pay dividends