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.

Question

Quizplus · Accepted Answer

Dividends are not shown on the income statement; they are distributions of earnings and are recorded in the equity section of the balance sheet.

Which Statement Is incorrect