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Re: The_Free_Nebula post# 3915

Friday, 05/15/2015 11:07:06 AM

Friday, May 15, 2015 11:07:06 AM

Post# of 4094
Effect of Accumulated Deficit

An accumulated deficit reduces stockholders’ equity on the balance sheet, which decreases stockholders’ stake in the company. A company with an accumulated deficit has no profits reinvested in its business and relies on its cash or other financing to remain in business. Banks might not lend to a business with an accumulated deficit. If a company’s cash runs out and it fails to turn a profit, it might end up in bankruptcy.


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