unappropriated profit

Definition

Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt. Unappropriated profit is part of shareholder equity. also called earned surplus or accumulated earnings or unappropriated profit.

Use this term in a sentence

You should always make sure that you use your unappropriated profit wisely to continue to improve your business for the future.

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The unappropriated profit was best used as the business would benefit dramatically from reinvesting money back into the source of the fund generation.

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My boss advised us that the company would not be paying out dividends this year because the company needed to use its earnings as unappropriated profit to grow the business.

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unanimously unaudited