The term deficit is used to refer to a debit balance in which of the following accounts of a corporation?

A) Retained Earnings
B) Treasury Stock
C) Organizational Expenses
D) Common Stock

Deficit

A debit balance in the retained earnings account.

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Treasury Stock

Shares that were once issued and outstanding but were subsequently repurchased by the company, reducing the number of shares on the market.