A debit balance in retained earnings is referred to as a(n):

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A debit balance in retained earnings is referred to as a deficit, meaning that the company has accumulated losses over time that exceed its profits and dividends. This is considered a liability, as it represents an obligation or debt owed by the company to its shareholders. A normal balance for retained earnings would be a credit balance, indicating that the company has earned more profits than it has paid out in dividends.

A Debit Balance in Retained Earnings Is Referred to as A(n)