Accounting Terms-O

A B C D E F G-H I J-K L M N O P-Q R S T-U-V W X-Y-Z

online banking service
A service offered by a bank that allows you to download bank statements and make electronic fund transfers using a computer and an internet connection.

online bill payment service
A service offered by a bank or another company that allows you to send electronic payment instructions to a computer. This computer then withdraws the appropriate funds from your account and writes and sends a check to pay the bill.

operating lease
A lease covering a time period shorter than the economic life of the asset. Operating leases can be canceled at any time.

opportunity cost
Income that could be saved or earned by investing in another, more attractive endeavor. For example, if you had $10,000 in mutual funds paying $500 in dividends annually, and you knew you could earn $750 in dividends from stock, the cost of staying with your original investment—your opportunity cost—would be $250.

option
A contract giving a dealer or broker the right to buy or sell a security during a certain time period at a certain price.

original issue discount (OID)
The difference between what a bond costs when it was issued and what its price is at maturity.

origination fee
The fee that lenders charge loan applicants to handle loan applications and to conduct credit investigations.

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