1. The payment of dividends reduces cash. If the Cash account is reduced with a credit, why is the Dividends account debited when dividends are paid? 2. How does the T account differ from the running...

1. The payment of dividends reduces cash. If the Cash account is reduced with a credit, why is the Dividends account debited when dividends are paid?

2. How does the T account differ from the running balance form for an account? How are they similar?

3. What is the benefit of using a cross referencing system between a ledger and a journal?