If the cumulative earnings minus the cumulative dividends declared result in a negative amount, there will be a negative amount of retained earnings. This negative amount of retained earnings will be reported as a separate line within stockholders' equity.
If the amount of negative retained earnings is greater than the amount of paid-in capital, the total of the stockholders' equity section will also be a negative amount.
To recap, negative amounts can occur and the negative amounts must be reported.
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