Resources ❯ Accounting Terms

Surplus

[SUR-plus]

What is the definition of Surplus?

An excess amount of an asset or resource compared to what is needed, often used in financial contexts to describe the amount by which revenue exceeds expenses.

Using Surplus in an Example

In the fiscal year 2022, the company reported a surplus of $500,000 due to higher than expected sales and controlled operational costs.

Using Surplus in a sentence

The budget meeting revealed a surplus this quarter, allowing us to consider additional investments in new technology.

Related Terms

Surviving Spouse

A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.

Swap

A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.

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