Shareholders' equity and liabilities both have normal credit balances. Why are the shareholders' equity debit/credit rules more complex than liabilities? O The elements of Shareholders' Equity are broken into different types of accounts; some are increased with debits and some with credits. O Sharedolders' equity is composed of both Common Shares and Retained Earnings, one of which is increased with debits and the other with credits. O Net income can be a loss, thus changing the debit/credit relationship. O Dividends are paid to common shareholders, thus reducing Common Shares. O +