If a Company Has a Deficit in Retained Earnings

question 33

Multiple Choice

If a company has a deficit in retained earnings:

• A)then retained earnings has a credit balance.
• B)the deficit is subtracted to determine total stockholders' equity on the balance sheet.
• C)the deficit is added to determine total stockholders' equity on the balance sheet.
• D)then the corporation's lifetime earnings exceed lifetime losses and dividends.

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