Accumulated Income
Barron's Accounting Dictionary:
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Accumulated Income
1. cumulative profit that has been retained and not distributed in the form of dividends.
2. income amount used as the base for the computation of the accumulated earnings tax.
See also accumulated earnings tax.
| Accumulated Earnings Tax, Accumulated Depreciation, Accumulated Benefit Obligation (ABO) | |
| Accumulation, Accuracy, Acid Test Ratio |
Investopedia Financial Dictionary:
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Accumulated Income
The portion of net income that is retained by a corporation instead of being distributed as dividends. Any accumulated income is typically used by the corporation to reinvest in its principal business or to pay down its debt. Accumulated income appears under shareholder's equity on the corporation's balance sheet.
Also called "retained earnings".
Investopedia Says:
Accumulated income refers to the percentage of net income that is accumulated and used for reinvestment purposes or to pay down debt rather than being paid out in the form of dividends. Accumulated income is often invested in areas within the corporation that will create growth opportunities, such as research and development, new technology or machinery, and other forms of capital expenditures.
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Copyrights:
Barron's Accounting Dictionary
Dictionary of Accounting Terms. Copyright © 2010 by Barron's Educational Series, Inc. All rights reserved.
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Mentioned in
Section 2503 (C) of the Internal Revenue Code
(insurance term)
Earned Surplus
(in accounting)
Surplus
(in accounting)
Accumulated Earnings Tax
(legal term)
» More