Capital Surplus


DEFINITION of 'Capital Surplus'

Equity which cannot otherwise be classified as capital stock or retained earnings. It's usually created from a stock issued at a premium over par value.

BREAKING DOWN 'Capital Surplus'

Capital surplus is also known as share premium (UK), acquired surplus, donated surplus, paid-in surplus, or additional paid-in capital.

  1. Equity

    Equity is the value of an asset less the value of all liabilities ...
  2. Capital

    1) Financial assets or the financial value of assets, such as ...
  3. Retained Earnings

    Retained earnings is the percentage of net earnings not paid ...
  4. EBITA

    Earnings before interest, taxes and amortization. To calculate ...
  5. Profit and Loss Statement (P&L)

    A financial statement that summarizes the revenues, costs and ...
  6. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
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  1. What sectors are best for an investor seeking a high annual return?

    A company receives a share premium whenever it receives money in excess of the face value (par value) of its shares. Corporations ... Read Full Answer >>
  2. What business risks ultimately caused Enron's collapse?

    The Internal Revenue Service (IRS) requires that a company lists its share premium – otherwise known as the capital surplus ... Read Full Answer >>
  3. How does goodwill increase a company's value?

    Business goodwill is an intangible asset owned by and associated with the operation of the company. The goodwill of a company ... Read Full Answer >>
  4. Are dividends considered an asset?

    Whether dividends paid on stock are considered an asset depends on which role you play in the investment: the issuing company ... Read Full Answer >>
  5. What is a profit and loss (P&L) statement and why do companies publish them?

    A profit and loss (P&L) statement, or balance sheet, is essentially a snapshot of a company's financial activity for ... Read Full Answer >>
  6. How do dividends affect the balance sheet?

    Dividends paid in cash affect a company's balance sheet by decreasing the company's cash account on the asset side and decreasing ... Read Full Answer >>

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