Question
Match each term below with the description that fits it best. 6. Scrip Dividend 7. Liquidating Dividend 8. Basic Earnings per Share 9. Diluted Earnings
Match each term below with the description that fits it best.
6. Scrip Dividend
7. Liquidating Dividend
8. Basic Earnings per Share
9. Diluted Earnings per Share
10. The Date of Declaration
Answers for Questions 6, 7, 8, 9, 10:
A. Required to be reported for a company that has a simple capital structure.
B. The date on which only investors listed in the stockholders' ledger can receive the
dividend.
C. May be issued when a corporation has adequate retained earnings to meet the legal
dividend requirements, but insufficient cash to justify a current cash dividend.
D. Represents a return of contributed capital rather than a distribution of retained
earnings (usually issued when a corporation is ceasing or reducing operations).
E. An appropriate description of the item does not appear (i.e., none of the above).
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