What is another term for earned surplus?

The term "earned surplus" refers to the profits that a company retains after distributing dividends to its shareholders. This retention of profits is recorded in the company's financial statements under the equity section, specifically labeled as retained earnings. Retained earnings represent the accumulated amount of net income that has not been paid out to shareholders as dividends.

This concept is fundamental in accounting, as it reflects the company’s ability to reinvest in its operations, pay off debts, or accumulate reserves for future use. Retained earnings play a critical role in assessing a company’s financial health and its capacity for growth.

In contrast, capital gains refer to the profit from the sale of an asset such as stocks or real estate, and dividend income is the earnings distributed to shareholders from profits. Operating revenue represents the money earned from a company's core business activities, not the retained profits. Therefore, the most accurate synonym for earned surplus within the given options is retained earnings.