An increase to the account Dividends would be recorded as a debit; as a result, the account Dividends normally has a debit balance.

Name: An increase to the account Dividends would be recorded as a debit; as a result, the account Dividends normally has a debit balance.
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Question

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Because dividends decrease equity, increases to the dividends account are recorded as debits. The normal balance of an account is the side on which increases are recorded.

An Increase to the Account Dividends Would Be Recorded as a Debit;