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O&M
is an acronym for either Operations & Maintenance or Operations & Management.
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OAC
is On Approved Credit.
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OASDI
is Old-Age, Survivors, and Disability Insurance (US Social Security).
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OBJECT CODE
designates the type of expense or revenue to be charged to an account.
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OBJECT COST
is the total cost of producing an item: direct cost (labor & material) + overhead cost = Total Object Cost.
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OBJECTIVE
is a statement that is written in terms of specific measurable time-based and verifiable outcomes that challenge the organization to be more responsive to the environment to achieve the desired goals. Dependent upon usage, GOALS are general in nature, while OBJECTIVES are specific, measurable and time-based. In some organizations, the meanings for GOAL and OBJECTIVE are reversed.
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OBJECTIVITY PRINCIPLE
states that accounting will be recorded on the basis of objective evidence. Objective evidence means that different people looking at the evidence will arrive at the same values for the transaction. Simply put, this means that accounting entries will be based on fact and not on personal opinion or feelings.
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OBLIGATE
is to cause to be indebted or grateful. To de-obligate would be to enable the debt to be forgiven or expunged.
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OBLIGATION
, in business, is a legal duty to pay or do something.
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OBLIGATION BOND
is a bond signed by a mortgagor (borrower) for an amount greater than the loan amount. Such a bond creates a personal obligation on the part of the borrower and assures the lender of recourse in case of nonpayment of property taxes and insurance or past due interest on the mortgage.
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OCBOA
is Other Comprehensive Basis of Accounting.
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OCCUPANCY COST
is any cost or charge incurred by a tenant pursuant to its lease, such as rent, operating expense increases, parking charges, moving expenses, remodeling costs, etc.
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OCF
see OPERATING CASH FLOW.
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OCI
see OTHER COMPREHENSIVE INCOME.
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OCOGS
is Operating Cost of Goods Sold.
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OCOR
see OPPORTUNITY COST OF REVENUE.
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OCSE
is Office of Child Support Enforcement.
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OEI
is Outside Equity Interest.
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OEM
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OFA
is Oracle Flexible Architecture or Oracle Financial Accounting.
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OFF THE BOOKS
is a term associated with transactions which do not appear in any of the financial records kept by a business. Strictly speaking, ‘off the books’ implies cash payments received for assets (products and services) which are not officially recorded in the accounting system of the business.
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OFF-BALANCE SHEET
is not fully documented accounting transactions that can potentially incur risks of loss that are not fully transparent to investors.
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OFF-BALANCE SHEET ASSET
is an item representing a resource of the entity or something that is projected to have future economic value. It is a positive indicator of the entities financial position even though it is not contained within the balance sheet.
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OFF-BALANCE SHEET FINANCING
a. is a form of borrowing in which the obligation is not recorded on the borrower’s financial statements. Off-balance sheet financing can employ several different techniques, which include development arrangements, leasing, product financing arrangements or recourse sales of receivables. Off-balance sheet financing will raise concerns regarding the lenders’ overall risk, but it improves their debt to equity ratio, which enhances their borrowing capacity. As a result, loans are often easy to arrange and are given lower interest rates because of the improved debt structure on the balance sheet. Off-balance sheet financing is a technique often used by multinational businesses in order to secure additional loans on the worldwide loan market; and, b. is a method of obtaining funds through a long-term non-cancelable lease that is accounted for as an operating lease. The lease does not meet the criteria of a 'capital lease'. This being the case, the present value of the lease obligation in not included in the lessee's balance sheet.
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OFF-BALANCE SHEET LIABIILITY
is an item not reported within the body of a financial statement as a liability that may require future payment or services, e.g., litigation, renegotiated claims within a government contract, and guarantees of future performance.
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OFF-BOOK PARTNERSHIP
is a type of blind trust. It offers some advantages over the traditional methods of capital procurement. In some cases there is a fatal lack of transparency (e.g. Enron) that allows off-book partners to hide debts, pump profits, launder money and enrich insiders, but ultimately bankrupting the company and stripping assets from its employees’ pension funds. See BLIND TRUST.
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OFF-FRONT PAYMENT
see UP-FRONT PAYMENT.
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OFF-PEAK
is not in the period of most frequent or heaviest use: lower rates for telephone calls made during off-peak hours; travelers who take advantage of off-peak fares. See PEAK.
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OFFER PRICE
see ASK PRICE.
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OFFICIAL INTEREST RATE
, normally, is the rate of interest charged by the government or traders within the money market, e.g., federal funds rate and bank repurchase agreement (repo rate).
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