Original Cost
Original cost refers to the initial purchase price of an asset, including all expenditures necessary to bring it to usable condition. Under the historical cost principle, assets are recorded at this amount rather than current market value. Original cost serves as the base for calculating depreciation, impairment, and eventual gain or loss on disposal.
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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…
Outstanding Shares
Outstanding shares refer to the total number of a company’s shares currently held by investors, including institutional holders and company…
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