If current liabilities are greater than current assets, the result is a working capital deficit.[5] A deficit could signal that the company is at risk of becoming insolvent (meaning unable to pay their debts when they become due). There are many reasons why a company may become insolvent. ...
If the retained earnings account has a negative balance, it is called "accumulated deficit." Knowing a company's cumulative retained earnings since formation allows you to find the company's retained earnings balance after the next reporting period. For instance, if your company has cumulative ...