When a net loss occurs,it is subtracted from the balance in the Retained Earnings account.

Question

Quizplus · Accepted Answer

When a company experiences a net loss, it means their expenses have exceeded their revenue, resulting in a negative balance. This negative balance is subtracted from the balance in the Retained Earnings account, which represents the accumulated profits and losses of a company since its inception. Therefore, the answer is True.

When a Net Loss Occurs,it Is Subtracted from the Balance