Accounting



What is “deficit” appearing in stockholders’ equity?


The term deficit is used instead of retained earnings when the retained earnings is a negative amount.

You can learn more about Stockholders’ Equity.


the accounting coach

About the Author: Harold Averkamp (CPA) has worked as an accountant, consultant, and university accounting instructor for more than 25 years.

He is the creator of the AccountingCoach Pro which has been praised for its ability to simplify accounting in a way that anybody can understand.

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