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Match the Appropriate Key Term with the Correct Definition Below

Question 110

Matching

Match the appropriate key term with the correct definition below.

Premises:
investors listed on the stockholders' ledger will receive dividends
not enough cash to pay a dividend, a promissory note is issued
common stock outstanding and possibly nonconvertible preferred stock
It is the assumption that all convertible stocks or bonds have been converted into common stock at the beginning of the earliest reporting period
negative retained earnings
return of capital rather than a distribution of earnings
stock stops selling with dividends attached
unavailable for dividends
Responses:
deficit
restriction
date of record
potential common shares
ex-dividend date
liquidating dividends
if-converted method
appropriation
scrip dividend
simple capital structure

Correct Answer:

deficit
restriction
date of record
potential common shares
ex-dividend date
liquidating dividends
if-converted method
appropriation
scrip dividend
simple capital structure
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