accumulated earnings

Definition

Earnings not paid out as dividends but instead reinvested in the core business or used to pay off debt. also called earned surplus or unappropriated profit or retained earnings.

Use this term in a sentence

You should try and add up all of your accumulated earnings to know what your total profits have been recently.

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My company is determined not to pay out dividends so long as it can continue to find a use for accumulated earnings in improving our businesses or buying up new ones.

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This was it! This was the year, where there wasn't a negative balance in the accumulated earnings after the year end closing! Snow crab legs and $10 bottles of wine for everyone!

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accumulated earnings tax current earnings and profits