Which of the Following Describes a Retained Earnings Deficit

question 135

Multiple Choice

Which of the following describes a retained earnings deficit?

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

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Definitions:

Compound

A chemical compound is a substance composed of two or more different elements that are chemically bonded together in a fixed ratio, distinguished by its chemical composition and properties.

Thiol Proton

The hydrogen atom attached to the sulfur atom in a thiol group, characterized by its ability to be acidic and participate in hydrogen bonding.

Acidity

A measure of the concentration of hydrogen ions in a solution, often associated with the degree to which a substance is able to donate a proton.

Phenol

An aromatic compound consisting of a benzene ring bonded to a hydroxyl group (-OH).