The Reason That Both Expenses and Dividends Are Recorded by Debit

Multiple Choice

The reason that both expenses and dividends are recorded by debit entries is that:

A) All dividend and expense transactions involve offsetting credit entries to the Cash account.
B) Both expenses and dividends are offset against revenues in the income statement.
C) Both expenses and dividends reduce equity.
D) The statement is untrue-expenses are recorded by debits, but dividends are recorded by credits to the equity account.