Which of the Following Describes a Retained Earnings Deficit

question 107

Multiple Choice

Which of the following describes a retained earnings deficit?

• A)When the company does not pay out any dividends
• B)When the retained earnings is a negative amount
• C)When the retained earnings is less than the total share capital
• D)When the company records a loss for the year

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Definitions:

Breach

The act of violating a law, promise, agreement, or barrier.

Special Circumstances

Situations that are exceptional, and may require different treatment or exceptions to standard rules or policies.

Incidental Beneficiary

A third party for whose benefit a contract was not made but who would substantially benefit if the agreement were performed according to its terms and conditions.

Enforceable Legal Rights

are rights granted by the law that can be brought before a court for protection or enforcement.