A deficit occurs when a company has reoccurring losses and/or declares dividends in excess of retained earnings.

Name: A deficit occurs when a company has reoccurring losses and/or declares dividends in excess of retained earnings.
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Question

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A deficit occurs when a company's expenses exceed its revenues, resulting in net losses over time. If a company declares dividends in excess of its retained earnings, it can exacerbate the deficit and create additional financial problems for the company.

A Deficit Occurs When a Company Has Reoccurring Losses And/or