A Deficit in Retained Earnings can be created by all of the following except.
A)Net losses exceeding net income
B)Paying more in dividends than earnings generated
C)Receiving less than the par value when stock is issued
D)All of the above can create a deficit

Question

Quizplus · Accepted Answer

Receiving less than the par value when stock is issued may result in a decrease in the amount of paid-in capital, but it would not directly result in a deficit in retained earnings. All the other options directly result in a deficit in retained earnings.

A Deficit in Retained Earnings Can Be Created by All