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What is the name given to excess profits that are reinvested back into a business?
Wiki User
∙ 16y ago
The term that you are looking for is 'retained earnings'. These are excess profits that may or may not be reinvested back into a business. They are ususally based on a percent of net earnings that are not paid out as dividends. Retained earnings are also used to pay debt and are recorded on the balance sheet under Shareholders' Equity.Also referred to as 'retained surplus' or 'undistributed profits', retained earnings are derived by adding net income to or subtracting net losses from beginning retained earnings less dividends paid to shareholders.
Wiki User
∙ 16y ago
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What were railroad rebates?
An agreement between railroad companies to divide business in a given area share the profits
Why did the Early railroad owners form pools?
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What is revenue reserve?
THE REVENUE RESERVE IS THAT PART OF PROFIT THAT HAS BEEN NOT GIVEN TO THE SHAREHOLDER BUT RETAINED IN THE BUSINESS FOR FURTHER GROWTH. HENCE REVENUE RESERVE AS PAR DEFINATION IS THE PART OF THE PROFITS RETAINED IN THE BUSINESS. == ==
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