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.

---

Definitions:

Ice Cream

A sweet, frozen dessert made from cream or milk and flavors, often churned and frozen to a soft consistency.

Budget Constraint

The limit on the consumption bundles that a consumer can afford based on their income and the prices of goods.

Music Downloads

The process of transferring music files from the internet to a computer or a music player, allowing users to listen to their preferred tracks.

Online Movie Streaming

The process of watching movies over the internet without downloading them, often through subscription services.