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Category : Bookkeeping

04 Jul 2019

The Consequences of Having Negative Business Equity – Business Finance Articles

The Consequences of Having Negative Business Equity – Business Finance Articles Red ink in this account is known as accumulated deficit. Year 2 was a bad year. Sales were down and Guitars, https://www.bookstime.com/blog/what-does-accounts-receivable-mean Inc. lost $40,000. This would reduce the $15,000 positive RE balance to a negative $25,000. Say you just started a business. Your beginning retained earnings would be $0. You have negative retained earnings when your net loss is greater than the retained earnings positive balance. In this […]