An accumulated deficit does not necessarily mean the company is in financial trouble. There are some cases in which a business might have an accumulated deficit and still have a strong financial future.when its MJ.. these things are more glaring..Check Tweed Inc.. For example, a young small business that has yet to generate a profit could show an accumulated deficit on their balance sheet because of start-up costs but might be rapidly acquiring new customers and increasing its revenue. One period of profit could turn its accumulated deficit into positive retained earnings.
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