Can current earnings and profits or accumulated earning and profits be negative? Please provide reference.© BrainMass Inc. brainmass.com June 4, 2020, 3:16 am ad1c9bdddf
Yes, both can be true but they don't have to both be true. One can be true but not the other.
Current earnings is negative when the firm has more expenses than revenues for the period. That generates a loss for the current period.
Accumulated earnings and profits (sometimes called retained earnings although retained earnings is accumulated earnings less dividends) is the ...
Your tutorial is 186 words and two reference and shows how a firm can have negative current earnings, negative cumulative earning or both.