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A debit balance in Retained Earnings is known as a

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

1 Answer

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Final answer:

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.

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