Reference no: EM132934417

Problem 1: When a cash dividend payment is made, the transaction would be:

1- A credit to the Dividend Expense account and a credit to the Cash account

2- A debit to the Dividend Expense account and a credit to the Cash account

3- A credit to the Dividend Payable account and a credit to the Cash account

4- A debit to the Dividend Payable account and a credit to the Cash account

Problem 2: The Statement of Cash Flows reports:

1- Assets, liabilities and capital

2- Income, gains, expenses and losses

3- Cash inflows and outflows during an accounting period

4- Capital, net income and dividends