4. Long-term investments are listed on the balance sheet at historical cost. a. True b. False Most long-term liabilities are reported on the balance sheet at their a. net realizable value. b. replacement value. c. historical cost. d. present value. A deficit occurs when a company's a. retained earnings are less than its common stock. b. dividends distributed are greater than comprehensive income. c. dividends and cumulative losses are greater than cumulative net income. d. retained earnings are less than assets minus liabilities