earned surplus

Definition of "earned surplus"
  1. The residual profit left after accounting for losses, payouts to stockholders, and transfers to the accounts of capital stock
How to use "earned surplus" in a sentence
  1. The company plans to use a portion of its earned surplus to invest in new machinery.
  2. The financial statement reported an increase in the company's earned surplus compared to the previous year.
  3. The earned surplus figure plays a critical role in determining a company's ability to pay dividends.

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