Which of the Following Statements Is the Most Common Explanation

Multiple Choice

Which of the following statements is the most common explanation as to why a company might have a negative amount of total stockholders' equity on its balance sheet?

A) Its total assets exceed its total liabilities.
B) Its total revenues are less than its total expenses in the current period.
C) Its cash is segregated in a separate bank account designated for emergency uses.
D) It has a negative balance in its Retained Earnings account.