An accumulated deficit would appear in which financial statements?
A)The balance sheet and the income statement.
B)The income statement and the retained earnings statement.
C)The balance sheet and the statement of stockholders' equity statement.
D)The income statement and the statement of stockholders' equity.

Question

Quizplus · Accepted Answer

An accumulated deficit is a negative balance in the retained earnings account, which is reported in the stockholders' equity section of the balance sheet. Additionally, the change in retained earnings for the period is reported on the statement of stockholders' equity, which also includes any accumulated deficit. Therefore, the accumulated deficit appears in both the balance sheet and the statement of stockholders' equity.

An Accumulated Deficit Would Appear in Which Financial Statements