Surplus

A surplus is the residual amount of resources remaining after a period of usage. In the accounting area, a surplus refers to the amount of retained earnings recorded on an entity's balance sheet; a surplus is considered to be good, since it implies that there are excess resources available that can be used in the future. In the manufacturing area, a surplus refers to the excess amount of goods that were produced but could not be sold; in this case, a surplus may be bad, since the extra goods tie up working capital and may need to be written off if they become obsolete or spoil.