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Robsct

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Re: greaseyfingers post# 3573

Tuesday, 01/22/2013 6:11:17 AM

Tuesday, January 22, 2013 6:11:17 AM

Post# of 32544
Accumulated deficit is not debt. See what it means. Any start up company will have a negative accumulated deficit until they start having revenue. For us and for the operation of the company it doesn't really matter. It's an accounting gimmick.


"What does accumulated deficit mean under stockholder equity on a balance sheet?

Best Answer

It means that since the inception of the company they have lost more money than they have made. i.e. The total of there net income and net loss for each year they have been in existence is a net loss.

http://wiki.answers.com/Q/What_does_accumulated_deficit_mean_under_stockholder_equity_on_a_balance_sheet
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