1. Below is a list of key terms: a. deficit b. restriction c. date of record d.

Question

1. Below is a list of key terms: a. deficit b. restriction c. date of record d. potential common shares ex-dividend date f. liquidating dividends g. if-converted method h. appropriation i. scrip dividend j. simple capital structure Required: correct definition belo 1) 2) 3) 4) 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 earlicst reporting period 5) negative retained earnings 6) return of capial ather than a distrbution of earnings 7) stock stops selling with dividends attached 8) unavailable for dividends

Explanation / Answer

1 Date of record 2 scrip dividend 3 simple capital structure 4 potential common shares 5 Deficit 6 liquidating dividend 7 ex dividend date 8 restriction

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