NET SURPLUS Meaning and
Definition
-
Net surplus refers to the excess of revenue or income over expenses or costs in a business, organization, or individual's financial accounts within a specified period. It is an important metric that indicates the profitability or financial health of an entity after taking into account all the necessary expenditures.
In business terms, net surplus is calculated by subtracting the total expenses or costs from the total revenue or income generated during a certain period. It represents the amount of money or resources that remain after all the expenditures have been deducted. A positive net surplus is a favorable outcome, indicating that the entity has a profit, whereas a negative net surplus suggests a loss or deficit.
Net surplus is a crucial indicator for evaluating the financial performance and effectiveness of an organization. It serves as a benchmark for measuring the efficiency in managing expenses and generating revenue. It is commonly used for decision-making purposes, such as reinvesting profits, planning future investments, allocating funds for expansion or development, and assessing the overall financial stability of an entity.
Overall, net surplus captures the final financial outcome of an entity by subtracting all expenses from the total revenue. It provides insight into the profitability and sustainability of a business or organization, enabling stakeholders to gauge its financial position and potential for growth.
Common Misspellings for NET SURPLUS
- bet surplus
- met surplus
- jet surplus
- het surplus
- nwt surplus
- nst surplus
- ndt surplus
- nrt surplus
- n4t surplus
- n3t surplus
- ner surplus
- nef surplus
- neg surplus
- ney surplus
- ne6 surplus
- ne5 surplus
- net aurplus
- net zurplus
- net xurplus
- net durplus
Etymology of NET SURPLUS
The word "net" comes from the Old English word "nett" which meant "remaining after all deductions". It eventually evolved into "net" in Middle English, retaining the same meaning.
The word "surplus" comes from the Latin word "superplus" which meant "excess" or "remainder". It is a combination of the Latin words "super" meaning "above" or "beyond", and "plus" meaning "more".
When combined, "net surplus" refers to the remaining amount or excess of something after all necessary deductions or expenses have been subtracted.
Infographic
Add the infographic to your website:
