Question 9 A corporation: distributes earnings to shareholders by paying dividends that are considered expenses on the corporation's income statement increases its Retained Earnings account, which is an equity account, by paying shareholders dividends distributes earnings to shareholders by paying dividends that reduce corporate equity O by paying the shareholders as outside consultants Question 10 The Common Stock account: Is an equity account that represents equity of the corporation, typically the initial investment of the shareholder(s) Is an asset account based upon the investment of the corporation's shareholders Is typically used by partnerships and corporations as well as sole proprietorships 2 pts 2 pts