What question did this study set out to answer?

The aim is to clarify the use of the terms 'surplus' and 'reserve' in accounting practices.

Is Surplus the Reverse?

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The article redefines surplus and reserve in accounting, suggesting new terminology for clarity.

The aim is to clarify the use of the terms 'surplus' and 'reserve' in accounting practices.
Analyzed the current use of 'surplus' and 'reserve' in accounting literature.
Proposed a new accounting convention eliminating the term 'surplus'.
Suggested retaining 'reserve' only for describing retained earnings.
'Surplus' is suggested to be removed entirely from accounting vocabulary.
'Reserve' should be limited in use to enhance clarity in financial statements.
New conventions might reveal unnecessary retention of earnings under certain conditions.

George Herbert Wyman (1948) studied this question.

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