Which of the following statements is correct? Expense accounts result in decreases in net income and stockholder's equity and therefore have credit balances. Revenue accounts result in increases in net income and stockholder's equity and therefore have debit balances. Loss accounts result in decreases in net income and stockholder's equity and therefore have debit balances. Gain accounts result in increases in net income and stockholder's equity and therefore have debt balances. Which of the following is not a proper application of the revenue realization principle? Recording the sale of merchandise on credit as sales revenue. Recording rent received in advance as unearned rent revenue. Recording interest revenue when cash is collected rather than when earned. Reducing the unearned service revenue account for service revenue performed at the end of the accounting period. Which of the following statements is correct? Dividend income is a component of operating income