Black

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DEFINITION of 'Black'

A description of a positive balance on a company's financial statements. A company would be said to be "in the black" if it is profitable or, more specifically, if the company produces positive earnings after accounting for all expenses. Conversely, a company with negative earnings would be said to be "in the red."

BREAKING DOWN 'Black'

The phrase "in the black" is widely used to refer to the condition of companies that have been profitable in their last accounting period. This term is derived from the color of ink used by accountants to enter a positive figure on a company's financial statements. It is always better to be in the black as this indicates solid business performance.

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RELATED FAQS
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    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>
  3. How do dividend distributions affect additional paid in capital?

    Whether a dividend distribution has any effect on additional paid-in capital depends solely on what type of dividend is issued: ... Read Full Answer >>
  4. Why can additional paid in capital never have a negative balance?

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