Below is a list of key terms:

a. deficit

b. restriction

c. date of record

d. potential common shares

e. ex-dividend date

f. liquidating dividends

g. if-converted method

h. appropriation

i. scrip dividend

j. simple capital structure

Required: Match the appropriate key term with the correct definition below.

______ 1) investors listed on the stockholders' ledger will receive dividends

______ 2) not enough cash to pay a dividend, a promissory note is issued

______ 3) common stock outstanding and possibly nonconvertible preferred stock

______ 4) It is the assumption that all convertible stocks or bonds have been converted into common stock at the beginning of the earliest reporting period

______ 5) negative retained earnings

______ 6) return of capital rather than a distribution of earnings

______ 7) stock stops selling with dividends attached

______ 8) unavailable for dividends