Earned surplus - Definition

Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt. It is also known as retained earnings or Accumulated earnings or unappropriated profit. The money may be used for the purchase of equipment, better facilities, buy back shares, acquisitions or in general any Asset buy backs. It may also be set for the funding of research and development. In some cases, this Amount may also be used for paying off the company's debts. Earned surplus is recorded as part of owners' equity.



Terms near "Earned surplus"

Earner
Earnest money
Earning asset
Earning capacity
Earning potential
Earnings
Earnings adequacy ratio
Earnings allowance
Earnings announcement
Earnings before Interest after Taxes (EBIAT)
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