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Opening Balance: the balance of an account when it is initially opened, or the balance carried over from the previous accounting period, (i.e. last accounting periods’ closing balance.)

Operating Lease: an agreement whereby the leaser retains the risks and rewards associated with ownership and normally assumes responsibility for repairs, maintenance and insurance.

Operating Profit: this is calculated: Gross Profit - Expenses. It is the same as net profit unless the business has other income from investments or expenditure on loan interest. These items are not considered in calculating the Operating Profit.

Opportunity Costs: these are costs associated with losing the opportunity to do something else with your time.

Ordinary Shares: shares entitled to dividends after the preference shareholders have been paid their dividends. Output Tax VAT added to the net price of outputs (i.e. sales). Outputs Sales of goods and services.

Overdraft: a facility granted by a bank that allows a customer holding a current account to spend more than the funds in the account. Interest is charged daily on the amount of the overdraft on that date and the overdraft is repayable at any time upon demand from the bank.

Overheads: sometimes called core costs, these are the costs which must be paid for by all the projects and activities of the organisation, e.g. accounting fees, some salaries, office rent, etc.

Owners’ Equity: owners’ equity, also known as risk or liable capital, is a financial term for the difference between a company's assets and liabilities -- that is, the value that accrues to the owners (sole proprieter, partners, or shareholders). In a corporation, it is called shareholders' equity. In bankruptcy, ownership equity is the last or residual claim against assets, paid only after all other creditors are paid.