What is accumulated deficit?
submitted by shirley

Delium

An accumulated deficit means a company lost more money than it earned over the years. It's like when your expenses add up to more than your income, and the total losses start to pile up. It makes the company's net worth negative.

In other words, a deficit is when you spend more than you earn. An accumulated deficit is a lot of that, added up over time.

berzerker

Basically, if a company's expenses have consistently exceeded its profits, the losses build up, leading to an accumulated deficit, which shows up on the balance sheet as a reduction in shareholders' equity.