What is accumulated profit

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Gaurav Seth 7 years ago
The portion of net profits 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".
Accumulated Profits refers to the percentage of net profits that is accumulated and used for reinvestment purposes or to pay down debt rather than being paid out in the form of dividends. Accumulated profit 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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