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Simple English definitions for legal terms
appropriated surplus
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A quick definition of appropriated surplus:
Appropriated surplus is the part of a surplus that is set aside for a specific purpose. Surplus is the extra money or assets that remain after all expenses and debts have been paid. It can come from earnings, investments, or the sale of assets. Appropriated surplus is like putting money in a piggy bank for a specific goal, like buying a new toy or saving for college. It is different from unappropriated surplus, which can be used for any purpose.
A more thorough explanation:
Definition: Appropriated surplus is the portion of a company's surplus that is set aside for a specific purpose.
For example, a company may set aside a portion of its surplus for future expansion or to pay off debt. This portion of the surplus is known as the appropriated surplus.
Another example of appropriated surplus is when a company sets aside a portion of its surplus to pay dividends to shareholders. This portion of the surplus is known as the appropriated retained earnings.
Overall, appropriated surplus is a way for companies to allocate their surplus funds towards specific goals or purposes.