Accumulated Income

AAA

DEFINITION of '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 EXPLAINS 'Accumulated Income'

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.

RELATED TERMS
  1. Appropriated Retained Earnings

    Any unappropriated retained earnings that are specifically not ...
  2. Asset

    1. A resource with economic value that an individual, corporation ...
  3. Net Income - NI

    1. A company's total earnings (or profit). Net income is calculated ...
  4. Retained Earnings

    The percentage of net earnings not paid out as dividends, but ...
  5. Dividend

    1. A distribution of a portion of a company's earnings, decided ...
  6. Insurance Regulatory Information ...

    A collection of databases and tools used to analyze the financial ...
Related Articles
  1. Fundamental Analysis

    Evaluating Retained Earnings: What Gets ...

  2. Investing

    Which transactions affect the retained ...

  3. Taxes

    What's the difference between cost of ...

  4. Fundamental Analysis

    What are some examples of industries ...

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center