Which of the below is one of the ways of defining surplus?

A. Excessive liabilities

B. Excessive turnover

C. Excess value of liabilities over assets

D. Excess value of assets over liabilities

Answer: Option D

Solution(By Examveda Team)

Excess value of assets over liabilities is one of the ways of defining surplus. A surplus is an excess of total assets over total liabilities. The trade surplus is likely to persist, and reserve assets, after all, are generating interest incomes. A pension fund has a surplus when its assets exceed its obligations to current and future pensioners.