Business, Commerce, Tax

What is Accumulated Profit (Earning)?

Accumulated Profit (Earning)

Accumulated profits (earning) play a vital role in the distribution of dividend. So, many businesses prefer to set aside a portion of their earned profit for future use. Any reserve maintained by a company out of its profit is called accumulated profit. It may be used for a general purpose in future or may ultimately be distributed amongst the shareholders as a dividend.

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