On the statement of retained earnings:
A) a deficit in retained earnings is shown in parentheses.
B) net income flows from the balance sheet to retained earnings.
C) a positive balance in retained earnings is an indication the company is in financial difficulty.
D) treasury stock increases retained earnings.

Question

Quizplus · Accepted Answer

A deficit in retained earnings is typically shown in parentheses to indicate a negative balance.

On the Statement of Retained Earnings