Ordinary interest is a type of simple interest calculated based on a 360-day year, as opposed to the 365-day year used in exact interest calculations.
An ordinary loss for income tax purposes is a type of loss that can be deductible against ordinary income. This is usually more beneficial to an individual taxpayer compared to a capital loss, which has limitations on deductibility.
An ordinary resolution is a standard resolution that can be passed with a simple majority vote of more than 50% of company members either in person or by proxy. It is typically used when no specific type of resolution is required by the Companies Act 2006 or the company's articles of association.
An ordinary share is a type of equity ownership in a company that typically provides its holder with voting rights and a share of the company's profits.
Ordinary share capital is the total share capital of a company consisting of ordinary shares, which entitles shareholders to a share in the company's profits and may include voting rights and other privileges.
Ordinary Shareholders' Equity, often called Ordinary Shareholders' Funds, represents the remaining value of a company's assets after all liabilities and obligations to other shareholders are met, making this the equity available for distribution to ordinary shareholders.
Other Real Estate (ORE) and Other Real Estate Owned (OREO) refer to foreclosed properties held by lending institutions, not including properties used for bank operations.
An organization is a structured entity comprising roles and responsibilities designed to achieve predetermined objectives. Organizations encompass a wide range of areas, including private businesses, government agencies, non-profits, and more. In the twentieth century, organizations have expanded significantly in size and scope, adapting to the complex demands of modern economies and society.
Organization costs are the expenditures a business incurs during its formation. These costs include legal fees, business filing fees, and franchise acquisition costs. Capitalization and amortization of organization costs are important aspects for financial and tax reporting.
Planned, systematic process using behavioral science principles and practices to improve organizational functioning.
The Organization for Economic Cooperation and Development (OECD) is an international organization that works to shape policies that foster prosperity, equality, opportunity, and well-being for all.
An individual whose behavior and lifestyle closely conform to the social mores and expectations of an organization; derived from William F. Whyte's book The Organization Man.
A 12-nation oil-producing organization founded in 1960 dedicated to coordinating and unifying petroleum policies among member countries.
Organizational Behavior is an academic field of study concerned with human behavior in organizations. It encompasses topics such as motivation, group dynamics, leadership, organization structure, decision making, careers, conflict resolution, and organizational development.
Organizational Chart illustrates the interrelationships of positions within an organization in terms of authority and responsibility. It categorizes the organization into line organization, functional organization, and line and staff organization.
Organizational communication is the process by which activities and information are transmitted within an organization to achieve efficiency and effectiveness in achieving goals.
Organizational planning refers to the process of transforming organizational objectives into specific management strategies and tactics designed to achieve these objectives. It is one of the most crucial management responsibilities.
Organizational Psychology, also known as Industrial-Organizational (I-O) Psychology, is the scientific study of human behavior in organizations and the workplace. This field applies psychological theories and principles to organizations, focusing on increasing workplace productivity and related issues such as the physical and mental well-being of employees.
Organizational structure is the systematic way responsibility and authority are apportioned among the members of an organization. This concept is crucial for ensuring effective coordination and achieving organizational goals efficiently. Common types of organizational structure include functional organization, matrix organization, and line organization.
Organized labor, also known as unionized labor, refers to a group of workers who join together to negotiate with their employers regarding wages, hours, benefits, and other working conditions. The AFL-CIO is the largest union representing organized labor in the United States.
A visual representation of the hierarchical structure within an organization, depicting each manager's responsibilities and the chain of command.
Orientation has diverse meanings, including the positioning of a structure relative to environmental factors, introductory programs or lectures for newcomers, and the nature of someone’s strengths or interests, such as having a technical orientation.
The original cost refers to the initial amount paid to acquire an asset, which is used as the basis for financial reporting and depreciation calculations.
An original entry error is a mistake made in a book of prime entry such as a purchase incorrectly entered in the purchase day book, which is not revealed by a trial balance.
An Original Equipment Manufacturer (OEM) is a company that produces parts and equipment that are used in another company's end product. OEM parts are typically considered to be of higher quality compared to aftermarket parts.
Original equity refers to the amount of cash initially invested by the underlying owner in a venture or business. It is distinct from sweat equity and capital calls.
Original Issue Discount (OID) refers to the discount from par value at the time a bond or debt instrument is issued. It plays a crucial role in the bond market, particularly in zero coupon bonds, and involves complex tax treatments.
Original maturity refers to the interval between the issue date and the maturity date of a bond, distinct from current maturity, which measures the remaining time from the present to the maturity date.
An original order represents the first order received from a particular customer. It is crucial to track the sources of original orders to effectively concentrate on the most productive channels for attracting new first-time buyers.
In accounting, an originating timing difference refers to the initial recognition of a difference between the carrying amount of an asset or liability and its tax base that will result in taxable or deductible amounts in future periods.
An origination fee is a charge imposed by lenders on borrowers, particularly for mortgage loans, to cover the costs associated with issuing the loan. It can encompass a variety of expenses such as the salesman's commission, credit check, appraisal, and title expenses.
An originator can refer to any entity involved in the initial transaction of a mortgage loan, the planning stages of a new securities offering, or the initiation of money transfer instructions.
OTB can refer to off-track betting, a gambling practice, or to 'open-to-buy,' a retail inventory management strategy.
A regulated quotation service providing real-time quotes and last-sale prices for equities sold in the US over-the-counter market. Created by the National Association of Securities Dealers, Inc. (NASD) in 1990.
The OTC Market (Over-the-Counter Market) is a decentralized market where trading of financial instruments such as stocks, bonds, commodities, and derivatives occurs directly between two parties without a central exchange or broker.
Other Comprehensive Income (OCI) represents gains and losses that are not included in net income on the income statement but are reported in the equity section of the balance sheet.
A detailed explanation of Other Comprehensive Income (OCI), including its types, examples, related terms, and resources for further study.
Other Income refers to the revenue generated from activities that are not part of the primary operations of a business. It is a crucial component of a profit and loss statement, offering insights into ancillary revenue streams.
Other People's Money (OPM) refers to the financial practices of leveraging borrowed funds or investment capital instead of using one's own resources to facilitate business activities and financial growth.
Out of the Money (OTM) is a term used to describe an options contract that currently holds no intrinsic value. Specifically, a call option is OTM if the strike price is higher than the current market value of the underlying asset, whereas a put option is OTM if the strike price is lower than the current market value of the underlying asset.
Out-of-pocket costs refer to the additional expenses that a company or individual will have to pay as a direct result of a specific business decision. These costs can play a crucial role in decision-making, especially in scenarios where cash resources are limited.
Out-of-pocket expenses are expenditures from an individual's personal financial resources, often for business or personal uses. Common examples include unreimbursed costs for supplies, travel, and services.
In the context of auctions and competitive bidding, 'outbid' refers to placing a higher bid than a competitor. A person who has been outbid has lost the auction to the highest bidder.
An outcry market is a type of trading environment where prices are set through rapid and continuous verbal negotiations between buyers and sellers. These markets are typically found on the floors of commodity exchanges.
Outlay cost refers to the initial expenditure incurred for a project or activity, which can include both capital expenditures and working capital expenditures like raw material stocks.
An outlet store is a retail store operated by a manufacturer to provide an outlet for selling the manufacturer's irregular, overrun, or end-of-season merchandise. Although it is not always the case, outlet stores are often located close to the manufacturer.
Popular e-mail, contact management, and calendar software provided as part of the Microsoft Office suite.
Outlook Express is an e-mail and newsreader software program provided with earlier versions of Microsoft Windows and also made available by Microsoft for other operating systems. It has since been replaced by Windows Mail or Windows Live Mail.
Outplacement refers to job placement assistance and programs administered by organizations implementing downsizing or other staff reductions. These activities are designed to support separated employees in their transition to new employment opportunities.
Output refers to the amount produced, whether it's the results provided by a computer system or the tangible results of a production process.
Output tax refers to the value-added tax (VAT) charged on the total taxable supplies made by a VAT-registered trader. The standard rate typically varies by region, and understanding it is crucial for compliance and accurate financial reporting.
An outside director, also known as an independent director, is a member of a company's board of directors who is not part of the company's executive management team.
Outsourcing refers to the business practice where an organization contracts out a business process or operation to a third-party provider. This can involve services, manufacturing, or handling specific operations to leverage expertise, cost efficiency, and other benefits.
The term 'outstanding' has various meanings depending on the context, particularly in accounting and finance, where it can refer to unpaid debts, checks not yet presented for payment, and stock held by shareholders.
An Outstanding Balance is the amount of money currently owed on a debt. This figure represents the total unpaid portion of a loan, credit card, or other financial liability at any given time.
Outstanding capital stock refers to the total shares of a corporation that are currently held by all its shareholders, including retail investors, institutional investors, and company insiders. It is calculated by subtracting the number of treasury shares from the total issued shares.
An outstanding check is a check that has been written by a company or individual but has not yet been cleared by the bank.
Outstanding shares represent the total number of a company's shares that are currently held by all its shareholders, including share blocks held by institutional investors and restricted shares owned by the company’s officers and insiders.
Difference between the initially recorded store sales figures and the actual cash or audited figure, often caused by human error in making change or recording sales slips.
Over The Counter (OTC) refers to the trading of financial instruments, including stocks and bonds or pharmaceuticals, that are not listed on formal exchanges. This can occur via a network of dealers or directly between parties.
The term 'over-and-short' is frequently used in accounting to indicate discrepancies between recorded amounts and actual amounts, usually involving cash or inventory.
Over-the-Counter (OTC) trading refers to financial securities that are traded through a dealer network rather than through formal exchanges such as the New York Stock Exchange (NYSE).
The over-the-counter market (OTC market) facilitates the trading of financial instruments that occur directly between two parties, outside of formal exchanges.
Nonprescription medications that are legally sold over the counter in a retail store. Over-the-counter medicines can be purchased in any quantity without restrictions at the retail store level.
Over-the-counter (OTC) retailing refers to store-based retailing operations where merchandise is sold directly to consumers over a counter at stated prices.
In absorption costing, overabsorbed overhead occurs when the absorbed overhead is greater than the incurred overhead costs for a period, representing an addition to the budgeted profits of the organization.
Understanding the concept of overage in both general terms and within the context of retail leases is essential for businesses and investors.
The Overall Rate of Return (OAR) is a percentage relationship of net operating income (NOI) divided by the purchase price of a property. It is a metric used to assess the profitability of an investment.
The condition of a hotel, airline, or other business that accepts more reservations for a certain date or flight than it can offer accommodations. No-shows (people who have reserved but who do not arrive and do not cancel) are used to justify overbookings.
A condition where a security or market has seen an unexpectedly sharp price rise, leading to a high probability of a price drop, known as a correction. It indicates that there are few buyers left to push the prices further up.
Overbuilding occurs when there is excess real estate construction in an area, surpassing the market's ability to economically support it. This can lead to high vacancy rates, low rental income, and declining property values.
Overcapitalization arises when a company has more capital than it can efficiently use in its operations, often leading to financial inefficiencies such as excessive interest charges or diluted dividends.
An overcharge occurs when a retail price charged is greater than the actual retail price of an item, often due to errors, necessitating a refund to the customer.
An overdraft is a loan provided by a bank or building society for a customer with a cheque account, allowing the account to go into debit, up to a specified limit known as the overdraft limit.
Overflow is an error condition that arises when the result of a calculation exceeds the maximum limit of a number that can be represented by an electronic computer or calculator.
Overhang refers to the surplus shares remaining with underwriters when a new issue of shares has not been fully taken up by investors. This situation often results from an under-subscription during a public offering, leaving the underwriters with unsold shares.
Overhead costs are indirect expenses that are not directly tied to a specific product or service but are necessary for the overall operations of an organization.
Overhead absorption, also known as overhead allocation, involves distributing indirect costs to different cost units or products. It's a crucial part of cost accounting, ensuring all production costs are appropriately assigned.
An overhead absorption rate (OAR) is a method used in cost accounting to allocate overhead costs to products or services based on a predefined absorption basis.
An Overhead Analysis Sheet, also known as an Overhead Distribution Summary, is used to allocate manufacturing overhead costs to various cost centers within an organization using appropriate allocation or apportionment techniques.
Overhead costs refer to ongoing business expenses not directly attributed to creating a product or service. These costs help businesses operate and maintain their daily functions.
Overhead cost absorbed refers to the overhead costs allocated to the actual production during a period, calculated by multiplying actual production by the budgeted overhead absorption rate.
The overhead distribution summary provides an overview of how indirect costs are allocated across various departments or cost centers within an organization. It is a crucial aspect of cost accounting that helps in accurate product costing and budgeting.
Overhead Efficiency Variance is an accounting concept used in standard costing systems to measure the variance in overhead costs due to the efficiency or inefficiency of actual production time compared to the standard time allocated.
The Overhead Efficiency Variance measures the difference between the standard overhead cost allocated based on standard hours and the actual overhead cost incurred based on actual hours worked.
Overhead Expenditure Variance in Accounting represents the difference between the budgeted overhead allowance and the actual overhead incurred. This variance helps adjust the budgeted profits for over- or under-spending.
In a system of standard costing, the overhead total variance is the difference between the standard overhead recovered for actual units produced and the actual overhead incurred for a period.
Overhead Volume Variance is a budgetary metric used in cost accounting to measure the difference between the budgeted and actual fixed overhead allocated based on the actual volume of production.
Overheads, also known as burden in the USA, refer to the ongoing business expenses not directly attributed to creating a product or service. Understanding overheads is crucial for accurate financial reporting and cost management.
Overheating refers to an economic condition where rapid expansion leads to excessive inflation. It arises when demand outstrips supply, often causing price levels to increase.
An overimprovement occurs when a property improvement is valued significantly higher than the land it sits on, affecting its market value and efficiency. This commonly entails disproportionately expensive enhancements relative to the land’s inherent or potential value.
Overissue refers to the issuance of shares of capital stock in excess of the number authorized by a corporation’s charter. Preventing overissue is the function of a corporation's registrar, usually a bank acting as an agent, which works closely with the transfer agent.
In marketing and advertising, overkill refers to an expensive promotional effort that produces diminishing returns because it repels rather than attracts consumer interest.
The interest rate at which major banks lend to one another on the overnight market, typically utilized for short-term funding. Indexes of the average overnight rate, such as SONIA and EONIA, provide key reference rates in financial markets.
Overpayment occurs when a buyer sends a payment that exceeds the amount due. If not for a continuous service that can be extended, it must be refunded or credited to the buyer's account for future use.
Overproduction refers to the excessive production of goods beyond consumer demand, resulting in surplus inventory and potential financial losses for businesses.
The term 'override' carries distinct meanings across various fields, such as business, petroleum industry, contractual agreements, and government legislation. Understanding these variations can help in accurately interpreting the term based on the context.
The concept of overrun in production refers to exceeding predefined production limits, often due to estimation errors, reduction in order size, or attempts to utilize excess materials.
Income that has been subject to taxation outside the jurisdiction of one's resident country's tax authorities. When the same income is subject to taxation in more than one country, relief for the double tax is given either under the provisions of the double taxation agreement with the country concerned or unilaterally.
Continuing a sales presentation after the customer has agreed to buy, risking the potential to lose the sale.
