If a corporation has suffered only net losses since its inception,the Retained Earnings account will have a negative balance.

Question

Quizplus · Accepted Answer

Retained earnings represent earnings that have been kept by the corporation instead of being distributed as dividends to shareholders. If the corporation has suffered only net losses since its inception, then there would be no earnings kept and the retained earnings account would have a negative balance.

If a Corporation Has Suffered Only Net Losses Since Its