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LSDefine

Simple English definitions for legal terms

earned surplus

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A quick definition of earned surplus:

Term: Earned Surplus

Definition: Earned surplus is the money a company makes from its business operations after paying for expenses and taxes. It's like the money you have left over after paying for your toys and snacks. The company can use this money to invest in new projects or pay off debts. It's also called retained earnings.

A more thorough explanation:

Earned surplus, also known as retained earnings, is the profit that a company keeps after paying out dividends to shareholders and setting aside money for future investments or debt repayment. It is the balance of net profits, income, and gains after deducting losses and distributions to stockholders and transfers to capital stock accounts. This surplus is not taxable as a dividend.

  • A company earns a profit of $100,000 in a year. It pays out $20,000 in dividends to shareholders and sets aside $30,000 for future investments. The remaining $50,000 is the earned surplus that the company can use for other purposes.
  • Another company earns a profit of $50,000 in a year. It does not pay out any dividends to shareholders and does not have any debt to repay. The entire $50,000 is retained as earned surplus.

These examples illustrate how earned surplus is the portion of a company's profit that is not distributed to shareholders or used for debt repayment. Instead, it is kept by the company for future investments or other purposes.

earned income | earnest payment

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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