Which of the following statements is INCORRECT?

Typically, a firm's net income should exceed its EBIT.

As they are generally defined, money market transactions involve debt securities with maturities of less than one year.

The balance sheet gives us a picture of the firms financial position at a point in time.

If a company pays more in dividends than it generates in net income, its retained earnings as reported on the balance sheet will decline from the previous year's balance.

The income statement for a given year is designed to give us an idea of how much the firm earned during that year.