Definition

Divisible profits

Divisible profits means those profits which can legally be distributed to the shareholders of a company in the form of dividends. It also does not say that only “true profits” can be divided.

Share it:  Cite

More from this Section

  • Annual rate of return technique
    Annual rate of return technique determines the profitability of a capital expenditure ...
  • Unearned income
    Income received though a part of it is not applicable to the current year ...
  • Physical units
    Physical units are the actual units to be accounted for during a period, irrespective ...
  • Income taxes
    Under the U.S. pay-as-you-go system of federal income taxes, employers are required to ...
  • Dirty Surplus Accounting
    Dirty Surplus Accounting is the process of reporting income items as part of equity rather ...