AAA can have a negative balance.

Name: AAA can have a negative balance.
Brand: Quizplus
Rating: 4.9 (48 reviews)

Question

Quizplus · Accepted Answer

AAA stands for Accumulated Adjustments Account, which is a tax term used for S corporations. It keeps track of the corporation's accumulated earnings and profits that have not been distributed as dividends to shareholders. The AAA can have a negative balance if the corporation has paid out more in dividends than it has earned in profits, or if there are deductible losses that exceed the accumulated earnings.

AAA Can Have a Negative Balance