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Difference between Earnings and Net Profit

My query is: what is the difference between Net profit and Earnings? Out of earnings , dividend is distributed to shareholders and the rest is kept as reserves and surplus. Right? Please correct me if I am wrong.


Kritika Kotiyal

Kritika Kotiyal

CA Inter

0

06-Jan-20 14:12

75

Answers (2)

Earnings is a the amount of cash you earned in terms of turnover, income from investments ,.... But, net profit is the amount that you have retained after your operating expences


sakthi saravanan

sakthi saravanan

CA Inter

510

07-Jan-20 12:20

Earnings and profits are generally used synonymously. In the context of earnings per share, earnings means profits left after deducting dividend payment to preference share holders.


Suraj Lakhotia

Suraj Lakhotia

Admin

07-Jan-20 13:56