Question

A debit balance in Retained Earnings is known as a

A) deficit.
B) surplus.
C) net loss.
D) None of these choices are correct.

Answer 1

A debit balance in Retained Earnings is known as a deficit. It represents when a company's expenses and losses exceed its revenues and gains.

Step-by-step explanation:

A debit balance in Retained Earnings is known as a deficit. It represents when a company's expenses and losses exceed its revenues and gains. This indicates that the company has accumulated negative retained earnings over time.