Earnings and Profits

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August 25, 2024 3 min read Definitions

Earnings and Profits: Understanding the Economic Capacity of Corporations

Finance Accounting Earnings and Profits Taxable Dividend Corporate Finance Tax Accounting Retained Earnings

An in-depth look at Earnings and Profits, a tax term central to understanding a corporation's ability to distribute wealth to shareholders. Different from Retained Earnings, it begins with taxable income and closely resembles the economist's approach to income.

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