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What is earning deficit?

Updated: 9/19/2023
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Wiki User

13y ago

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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.

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Demetris Boehm

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1y ago
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