O

Owner’s equity is the residual interest of the owner or shareholders in the business after deducting liabilities from assets. It includes capital introduced, retained...

Overhead refers to indirect costs that support business operations but cannot be directly traced to a specific product or service. Examples include factory rent,...

Overapplied overhead occurs when the amount of overhead allocated to production is greater than the actual overhead incurred during the period. This means products...

Outstanding shares are the shares of a company that have been issued and are currently held by shareholders, excluding treasury shares held by the...

Outsourced accounting means engaging an external service provider to handle accounting functions such as bookkeeping, reconciliations, payroll support, management reporting, accounts payable, accounts receivable,...

Other comprehensive income includes certain gains and losses that are recognized outside the regular profit and loss statement under applicable accounting standards. Examples may...

Original cost is the amount paid to acquire an asset at the time of purchase, including directly attributable costs where relevant. It forms the...

Order of liquidity means arranging assets according to how quickly they can be converted into cash. In financial statement presentation, the most liquid assets...

An operating lease is a lease arrangement where the asset is used for a period without transferring substantial ownership risks and rewards in the...

Operating income is the profit earned from the company’s core business activities before considering non-operating income, finance cost, and taxes. It shows how well...

Operating expenses are the day-to-day costs incurred in running the core business, excluding direct production costs where relevant. Examples include salaries, rent, marketing, office...

The operating cycle is the time taken by a business to purchase or produce goods, sell them, and finally collect cash from customers. It...