A negative balance for retained earnings due to cumulative net losses is called an)
A) deficit.
B) retained loss.
C) retained debit.
D) other comprehensive loss.

Question

Quizplus · Accepted Answer

A deficit in retained earnings occurs when a company has accumulated more losses than profits over time, leading to a negative balance in its retained earnings account. This is commonly referred to as a deficit.

A Negative Balance for Retained Earnings Due to Cumulative Net