Accumulated deficit

Also known as retained losses or accumulated losses. Retained earning is the portion of net income that is retained by company for future growth rather than distributing to shareholders in the form of dividends and accumulated deficit is the portion of net loss which is accumulated or retained by company. In other words accumulated deficit is the negative balance of retained earning account

Retained earnings or accumulated deficits are reported in the equity section of the balance sheet. Retained earnings are added to equity while accumulated deficits are subtracted from equity in balance sheet

A full fledge report of the retained earnings or retained losses is reported in the Statement of Retained Earnings or Statement of Retained Losses.