0
A loss (or losses) from previous years carried forward in order to offset future earnings. This reduces the tax burden for the years with profit as the accummulated losses are deducted from the taxable profit-
Wiki User
∙ 15y ago
Add your answer:
Earn +20 pts
What does accumulated deficit mean under stockholder equity on a balance sheet?
== == accumulated deficit is the net loss which is carried everyyear from p&l to balance sheet under stock holder equity. the net loss carried everyyear collectively is known as accumulated deficit == == http://www.investopedia.com/terms/s/shareholdersequity.asp
What is retained earnings deficit?
In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.
What is the normal balance of accumulated depreciation?
the normal balance of accumulated depreciation is "credit"
What happens to accumulated depreciation when a piece of equipment is sold Does it go up or down or is it not affected?
The accumulated depreciation relating to the piece of equipment will be eliminated from the accounts when the company disposes of the asset. The double entry for the sale of a piece of equipment would be-DR Cash/Bank (with the proceeds)DR Accumulated depreciation (with the total depreciation held for that asset)CR Equipment (with the original cost of the equipment)DR/CR Profit/loss on disposal (with the difference between the proceeds and the NBV of the asset at the time of sale).
What is the abbreviation for accumulated?
accum
How is Accumulated other comprehensive loss presented?
in stockholders' equity
You discarded a display case that had 7200 of accumulated depreciation which was 8000 at original purchase what gain or loss are involved?
loss of $800
What does accumulated deficit mean under stockholder equity on a balance sheet?
== == accumulated deficit is the net loss which is carried everyyear from p&l to balance sheet under stock holder equity. the net loss carried everyyear collectively is known as accumulated deficit == == http://www.investopedia.com/terms/s/shareholdersequity.asp
How do you account for equipment stolen from business?
Loss by theft will be charged to profit and loss account for that specific fiscal year with the remaining amount after accumulated depreciation till that time period.
What is the journal entry when you have not fully depreciated as asset that no longer exists?
Debit accumulated depreciationdebit loss on disposalCredit fixed asset
What is the journal entry to retire an asset that was damagaged and no longer in use?
Debit accumulated depreciationdebit loss on disposalCredit fixed asset
What is the General journal entry to write off obsolete assets?
debit accumulated depreciationdebit loss on assetcredit fixed asset account
What is the journal entry to write off a partially depreciated asset that was donated?
Debit accumulated depreciationdebit loss on disposalCredit fixed asset account
What is earning deficit?
In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.
How did Rome get power?
Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.Rome accumulated power by conquest and treaty.
What is retained earnings deficit?
In accounting, retained earnings refers to the portion of net income which is retained by the corporation rather than distributed to its owners as dividends. Similarly, if the corporation takes a loss, then that loss is retained and called variously retained losses, accumulated losses or accumulated deficit. Retained earnings and losses are cumulative from year to year with losses offsetting earnings.
What are the journal entries for the sale of a vehicle at a loss?
Answer:Assuming the vehicle is sold for 1,500 cash, the cost of the vehicle is 10,000, and that accumulated depreciation is 9,000: The journel entry is a debit to 'Cash' for 1,500, a credit to 'Vehicles' for 10,000, a debit to 'Accumulated depreciation vehicles' for 9,000, and, a credit to 'Gain on sale vehicles' for 500.
