21. The financial statement that shows the beginning balance of Retained Earnings; the changes in equity that resulted from, net income (or net loss); dividends; and the ending balance, is the: A. Statement of financial position. B. Statement of cash flows. C. Balance sheet. D. Income statement. E. Statement of Retained Earnings. 22. A debit: A. Always increases an account. B. Is the right-hand side of a T-account C. Always decreases an account. D. Is the left-hand side of a T-account. E. Is not need to record a transaction. A. Debit B. Increase. C. Credit D. Decrease. E. Account balance 24. A debit is used to record: A. A decrease in an asset account B. A decrease in an expense account C. An increase in a revenue account D. An increase in the balance of an owner's capital account. E. An increase in the balance of the owner's withdrawals account 25. A credit entry: A. Increases asset and expense accounts, and decreases liability, owner's capital, and revenue accounts. B. Is always a decrease in an account C Decreases asset and expense accounts, and increases liability, owner's capital, and revenue accounts. D. Is recorded on the left side of a T-account. E. Is always an increase in an account. 26. The classification and normal balance of the dividends account is a. an expense with a credit balance b an expense with a debit balance c a liability with a credit balance d. stockholders' equity with a debit balance 27. Which of the following is not a correct rule of debits and credits? a. Assets, expenses, and dividends are increased by debits. b. Assets are decreased by credits and have a normal debit balance. Liabilities, revenues, and stockholders' equity are increased by credits. d. The normal balance for revenues and expenses is a credit