When a firm has accumulated losses, rather than profits, the Retained Earnings account is typically called:
A)Negative cash balance
B)Ordinary Loss
C)Accumulated Excess
D)Accumulated Deficit
E)Insolvency

Question

Quizplus · Accepted Answer

When a firm has accumulated losses instead of profits, the Retained Earnings account will have a negative balance, which is referred to as an Accumulated Deficit.

When a Firm Has Accumulated Losses, Rather Than Profits, the Retained