Obsolescence
When an asset becomes no longer useful or productive.
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Operating expenses
Expenses incurred during the operational activities of a business.
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Operating income
The difference between gross profit and operating expenses. Referred to as net operating income; the subtotal before net profit.
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Operating lease
A lease that is considered to be a "true" lease. Usually the item leased must be returned at the end of the lease or a residual amount of at least 10% must be paid to own the item. The lease payment amount is fully expensed each month. Contrast to a capital lease.
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Operations
An entity's activities of buying and selling goods and services among other things.
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Organization costs
Associated with the start-up phase of a business organization. Costs incurred before doors opened for business. Can be amortized over 60 months.
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Other assets
Non-current assets excluding fixed assets. Usually intangible assets.
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Out of pocket cost
Cash purchases of small items by owner's or employees. Usually reimbursable.
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Outstanding stock
Shares of stock that have been issued to owners.
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Owner equity
The portion of assets owned by the sole proprietor, stockholders, or partners of a business entity.
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