Final answer:
Debits and credits impact temporary owner's equity accounts such that debits decrease and credits increase the owner's equity for revenue accounts, whereas for expenses and dividends, debits increase and credits decrease the owner's equity.
Step-by-step explanation:
Debits and credits impact temporary owner's equity accounts in a specific manner, depending on the nature of the account. Temporary accounts include revenues, expenses, and dividends. For revenues, credits increase the account while debits decrease it, because revenues increase owner's equity. For expenses and dividends, debits increase the account while credits decrease it, due to the fact that expenses and dividends decrease owner's equity.
The correct answer to the question is:
a) Debits decrease, credits increase owner's equity for revenue accounts, and the opposite holds true for expense and dividend accounts—debits increase, credits decrease owner's equity.