dentify the statement below that is incorrect. Multiple Choice The normal balance of accounts receivable is a debit. The normal balance of dividends is a debit. The normal balance of unearned revenues is a credit. The normal balance of an expense account is a credit. The normal balance of the common stock account is a credit.

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of