Legal Definitions - surplus revenue

Surplus revenue refers to the excess income or earnings that a company or organization has after all expenses and dividends have been paid. This surplus revenue can be used for various purposes, such as reinvesting in the business, paying off debt, or distributing to shareholders as dividends.

• A company earns $1 million in revenue and has $800,000 in expenses and dividends. The remaining $200,000 is considered surplus revenue.
• A non-profit organization receives $50,000 in donations and spends $40,000 on programs and services. The remaining $10,000 is considered surplus revenue.

These examples illustrate how surplus revenue is calculated by subtracting all expenses and dividends from total revenue. It is important for companies and organizations to manage their surplus revenue effectively to ensure long-term financial stability and growth.