Accumulated Earnings and Profits
- Accumulated Earnings and Profits
- An accounting term applicable to stockholders of closely held businesses. Accumulated earnings and profits are a company's net profits after deducting distributions to the stockholders. This is calculated as of the beginning of the year.
Accumulated earnings and profits are similar to retained earnings, because both terms refer to the net profits of a company after shareholder distributions. However, accumulated earnings and profits also can include reserve accounts, which are not deductible and which can be included when computing taxable earnings.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
earnings and profits, accumulated — n. Earnings and profits from previous years that have not yet been distributed as dividends. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008 … Law dictionary
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earnings — Income. That which is earned; i.e., money earned from performance of labor, services, sale of goods, etc. Revenue earned by an individual or business. Earnings generally include but are not limited to: salaries and wages, interest and dividends,… … Black's law dictionary
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retained earnings — An account on the balance sheet which represents the accumulated earnings of a corporation less any dividend distributions (including capitalization through stock dividends). It is usually a credit balance and a component of stockholder s equity … Black's law dictionary
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excess profits tax — Tax levied on profits which are beyond the normal profits of a business and generally imposed in times of national emergency such as war to discourage profiteering. The Internal Revenue Code also imposes a tax on corporations who accumulate an… … Black's law dictionary
excess profits tax — Tax levied on profits which are beyond the normal profits of a business and generally imposed in times of national emergency such as war to discourage profiteering. The Internal Revenue Code also imposes a tax on corporations who accumulate an… … Black's law dictionary
