Operating Lease
An operating lease is a rental agreement where the lessee uses an asset without owning it. It doesn’t appear on the balance sheet under older accounting rules but is treated as an expense. Under new lease standards (e.g., IFRS 16), most leases are now recognised on the balance sheet.
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Original Cost
Original cost refers to the initial purchase price of an asset, including all expenditures necessary to bring it to usable…
Order of Liquidity
Order of liquidity is the arrangement of assets on a balance sheet based on how quickly they can be converted…
Overapplied Overhead
Overapplied overhead occurs when the allocated manufacturing overhead costs exceed the actual overhead incurred during a period. This difference usually…
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