Which of the Following Statements Is the Most Common Explanation

question 63

Multiple Choice

Which of the following statements is the most common explanation as to why a company might have a negative amount of total stockholders' equity on its balance sheet?

• A)Its total assets exceed its total liabilities.
• B)Its total revenues are less than its total expenses in the current period.
• C)Its cash is segregated in a separate bank account designated for emergency uses.
• D)It has a negative balance in its Retained Earnings account.