Question 17 1.0o pointS Which statement is incorrect? 1) Dividends represent a distribution by a corporation to its stockholders 2) Dividends are shown on the income statement. Dividends reduce stockholders' equity, thus the Dividends account increases on th left side. 3) 4) The Dividends account has a normal debit balance. Save Question 20 (1.66 points) After a business transaction has been analyzed and entered in the book of original entry, th next step in the recording process is to transfer the information to 1) the company's bank. 2) stockholders' equity 3) ledger accounts. 4) financial statements