nominal account noun an account for recording transactionsrelating to a particular type of expense orreceipt nominal capital noun the total of the face value of all theshares which a com
Trang 1net price 150
net price
goods or services which cannot be reduced
by a discount
net price method
noun an approach that records the cost of
purchases after discounts have been
deducted
net proceeds
noun a figure equal to the amount realised
from a transaction minus the cost of making
the transaction
net profit
by which income from sales is larger than all
expenditure Also called profit after tax
net profit ratio
noun the ratio of an organisation’s net profit
to its total net sales Comparing the net profit
ratios of companies in the same sector shows
which are the most efficient
net realisable value
vlju/ noun the price at which goods in
stock could be sold, less any costs incurred
in making the sale Abbreviation NRV
net receipts
receipts after deducting commission, tax,
discounts, etc
net relevant earnings
niŋz/ plural noun earnings which qualify
for calculating pension contributions and
against which relief against tax can be
claimed Such earnings can be income from
employment which is not pensionable,
prof-its of a self-employed sole trader, etc
net residual value
vlju/ noun the anticipated proceeds of an
asset at the end of its useful life, less the
costs of selling it, e.g., transport and
com-mission It is used when calculating the
annual charge for the straight-line method of
depreciation Abbreviation NRV
net return
an investment after tax has been paid
net salary
which is left after deducting tax and
National Insurance contributions
net sales
amount of sales less damaged or returned
items and discounts to retailers
net turnover
turn-over before VAT and after trade discounts
have been deducted
net working capital
kpit(ə)l/ noun same as net current
assets
net worth
all the property of a person or company after
taking away what the person or company
owes 쑗 The upmarket product is targeted at individuals of high net worth.
net yield
investments after deduction of taxnew issue
new shares to raise finance for a companynew issues department
di|pɑtmənt/ noun the section of a bankwhich deals with issues of new sharesNI
NI abbreviation National InsuranceNIC
NIC abbreviation National Insurance bution
contri-NIF
NIF abbreviation note issuance facilitynight safe
outside wall of a bank, where money anddocuments can be deposited at night, using aspecial door
nil
nil /nil/ noun zero or nothing 쑗 The tising budget has been cut to nil.
adver-nil paid shares
noun new shares which have not yet beenpaid for
nil return
showing no sales, income, tax, etc.no-claims bonus
bəυnəs/ noun 1. a reduction of premiums
on an insurance policy because no claimshave been made 2. a lower premium paidbecause no claims have been made againstthe insurance policy
nominal
pay-ment) very small 쑗 They are paying a inal rent 쑗 The employment agency makes
nom-a nominnom-al chnom-arge for its services.
nominal account
noun an account for recording transactionsrelating to a particular type of expense orreceipt
nominal capital
noun the total of the face value of all theshares which a company is authorised toissue
nominal interest rate
intrəst reit/ noun an interest rateexpressed as a percentage of the face value
of a bond, not on its market valuenominal ledger
noun a book which records a company’stransactions in the various accountsnominal share capital
kpit(ə)l/ noun the total of the face value
of all the shares which a company is ised to issue according to its memorandum
author-of associationnominal value
noun same as face value
Trang 2151 normalise
nominee
nominated, especially someone who is
appointed to deal with financial matters on
your behalf
nominee account
noun an account held on behalf of someone
non-acceptance
noun a situation in which the person who is
to pay a bill of exchange does not accept it
noncash items
plu-ral noun cheques, drafts and similar items
which are not in the form of cash
noncontrollable cost
noncontrollable cost
/nɒnkəntrəυləb(ə)l kɒst/ noun a business
cost that the management team cannot
influ-ence, e.g the level of rent payable on
build-ings occupied
non-coterminous period ends
non-coterminous period ends
/nɒnkəυtminəs piəriəd endz/ noun a
point at which separate and related accounts
cease to cover different accounting periods
and begin to run coterminously
non-cumulative preference share
non-cumulative preference share
/nɒn kjumjυlətiv pref(ə)rəns ʃeə/
noun a preference share where, if the
divi-dend is not paid in the current year, it is lost
zekjυtiv dai|rektə/ noun a director who
attends board meetings and gives advice, but
does not work full-time for the company
Also called outside director
non-historic
not calculated on a historical cost basis
non-monetary
adjec-tive used for describing items or assets that
are not money and can be valued at a higher
value than their original purchase price
non-negotiable instrument
əυʃəb(ə)l instrυmənt/ noun a document
which cannot be exchanged for cash, e.g a
crossed cheque
non-performing loan
ləυn/ noun US a loan where the borrower is
not likely to pay any interest nor to repay the
principal, as in the case of loans to Third
World countries by western banks
nonproductive capacity
dktiv kə|psiti/ noun capacity that
duces no net production, e.g because
pro-duction needs to be repeated owing to
defects in earlier products
nonprofit accounting
kaυntiŋ/ noun the accounting policies and
methods employed by nonprofit
organisa-tions such as charities
non-profit-making organisation
non-profit-making organisation
/nɒn prɒfitmeikiŋ ɔ ənai|zeiʃən/
noun an organisation which is not allowed
by law to make a profit 쑗 Non-profit-making
organisations are exempted from tax (NOTE:Non-profit-making organisations includecharities, professional associations, tradeunions, and religious, arts, community,research, and campaigning bodies The US
term is nonprofit organization.)
non-recurring items
aitəmz/ plural noun items in an incomestatement that are unusual in nature or do notoccur regularly
adjective a person who is not considered aresident of a country for tax purposes 쑗 He has a non-resident bank account.
non-sufficient funds
fndz/ noun US a lack of enough money in
a bank account to pay a cheque drawn onthat account Abbreviation NSF Also called
insufficient funds, not sufficient funds
non-tariff barriers
plural noun barriers to international tradeother than tariffs They include over-compli-cated documentation, verification of goodsfor health and safety reasons and blockeddeposits payable by importers to obtain for-eign currency Abbreviation NTBs
non-taxable
not subject to tax 쑗 non-taxable income 쑗
Lottery prizes are non-taxable.
non-trade creditor
kreditə/ noun a creditor who is not owedmoney in the normal trade of a business, e.g
a debenture holder or the Inland Revenuenon-voting shares
plural noun shares which do not allow theshareholder to vote at meetings 쒁 A shares
normal absorption costing
əb|zɔpʃən kɒstiŋ/ noun a method ofproduct costing that averages out fluctua-tions in overhead costs
normal costs
noun annual product costs averaged out togive a monthly figure, as distinct from amonthly figure that records seasonal fluctu-ations in costs
normalise
to store and represent numbers in a agreed form, usually to provide maximumprecision
Trang 3pre-normal loss 152
normal loss
which is usual in the type of business being
carried on, e.g the loss of small quantities of
materials during the manufacturing process
normal spoilage
noun the deterioration of products that will
always take place, even under the best
oper-ating conditions
notary public
lawyer who has the authority to witness
doc-uments and spoken statements, making
them official (NOTE: The plural is notaries
public.)
note
note /nəυt/ noun 1.쑗 to send someone a
note 쑗 I left a note on her desk 왍 notes to
the accounts notes attached to a company’s
accounts by the auditors to explain items in
the accounts or to explain the principles of
accounting used 2. paper showing that
money has been borrowed
note issuance facility
siliti/ noun a credit facility where a
com-pany obtains a loan underwritten by banks
and can issue a series of short-term
Eurocur-rency notes to replace others which have
expired Abbreviation NIF
note of hand
document stating that someone promises to
pay an amount of money on an agreed date
note payable
document that gives a guarantee to pay
money at a future date
note receivable
noun a document that gives a guarantee to
receive money at a future date
notice of coding
noun an official notice from a tax authority
of someone’s tax code, which indicates the
level of tax allowance he or she is entitled to
receive
notice of default
noun US same as default notice
notional
proba-ble but not known exactly or not quantifiaproba-ble
notional income
noun an invisible benefit which is notmoney or goods and services
notional rent
a sum put into accounts as rent where thecompany owns the building it is occupyingand so does not pay an actual rent
not negotiable
phrase used for referring to a cheque thatmust be deposited in an account and cannottherefore be immediately exchanged forcash 쒁 crossed cheque, negotiable instrument
novation
agree-ment to change a contract by substituting athird party for one of the two original partiesNPV
NPV abbreviation net present valueNRV
NRV abbreviation 1. net realisable value 2.
net residual valueNS&I
InvestmentsNSB
NSB abbreviation National Savings BankNSF
NSF abbreviation not sufficient funds or
non-sufficient fundsNTBs
NTBs abbreviation non-tariff barriersnumber
things or people 쑗 The number of persons
on the payroll has increased over the last year 쑗 The number of days lost through strikes has fallen. 2. a printed or written fig-ure that identifies a particular thing 쑗 Please write your account number on the back of the cheque 쑗 If you have a complaint to
make, always quote the batch number 쑗 She noted the cheque number in the ledger 쐽
verb to put a figure on a document 쑗 to
number an order 쑗 I refer to your invoice numbered 1234.
numbered account
noun a bank account, usually in land, which is referred to only by a number,the name of the person holding it being keptsecret
Switzer-numeral
or symbol which represents a number
Trang 4that an accounting item can be verified by
supporting evidence, e.g by a voucher of
some kind
obligation
to do something 쑗 There is no obligation to
help out in another department 쑗 There is
no obligation to buy 왍 to fulfil your
con-tractual obligations to do what is stated in
a contract 2. a debt 왍 to meet your
obliga-tions to pay your debts
obsolescence
process of a product going out of date
because of progress in design or technology,
and therefore becoming less useful or
valua-ble
obsolete
used 쑗 Computer technology changes so
fast that hardware soon becomes obsolete.
occupational pension
occupational pension
/ɒkjυpeiʃ(ə)nəl penʃə/ noun a pension
which is paid by the company by which an
employee has been employed
occupational pension scheme
occupational pension scheme
/ɒkjυpeiʃ(ə)nəl penʃən skim/ noun a
pension scheme where the employee gets a
pension from a fund set up by the company
he or she has worked for, which is related to
the salary he or she was earning Also called
company pension scheme
mis-cellaneous items for sale at an auction 2 US
a group of less than 100 shares of stock
bought or sold together
OEIC
OEIC /ɔik/ abbreviation open-ended
invest-ment company
off
off /ɒf/ adjective not working or not in
oper-ation 쑗 to take three days off 쑗 The
agree-ment is off 쑗 They called the strike off 쑗 We
give the staff four days off at Christmas 쐽
adverb 1. taken away from a price 쑗 We give 5% off for quick settlement. 2. lower than aprevious price 쑗 The shares closed 2% off.쐽
preposition 1. subtracted from 쑗 to take £25 off the price 쑗 We give 10% off our usual
prices. 2. not included 왍 items off balance
sheet or off balance sheet assets financial
items which do not appear in a company’sbalance sheet as assets, such as equipmentacquired under an operating lease
‘…its stock closed Monday at $21.875 ashare in NYSE composite trading, off 56%
from its high last July’ [Wall Street nal]
Jour-off-balance sheet asset
ʃit set/ noun an item that is a valuableresource but does not feature on the balancesheet, e.g an expected rebate of some sortoff-balance-sheet financing
bləns ʃit fainnsiŋ/ noun a way ofraising finance through a long-term leasethat does not qualify as a capital lease andtherefore does not appear on the balancesheet
off-balance sheet liability
ʃit laiə|biliti/ noun a potential liability thatdoes not feature on the balance sheetoffer
willing to give or do something, especially
to pay a specific amount of money to buysomething 쑗 to make an offer for a company
쑗 We made an offer of £10 a share 왍 or
near offer US , or best offer or an offer of a
price which is slightly less than the priceasked 쑗 The car is for sale at £2,000 or near offer. 2. a statement that you are willing tosell something 3. a statement that you arewilling to employ someone 왍 she received
six offers of jobs or six job offers six
com-panies told her she could have a job withthem 4. a statement that a company is pre-pared to buy another company’s shares andtake the company over쐽 verb 1. to say thatyou are willing to pay a specific amount ofmoney for something 쑗 to offer someone
Trang 5offer document 154
£100,000 for their house 쑗 She offered £10
a share. 2. to say that you are willing to sell
something 쑗 They are offering special
prices on winter holidays in the US 쑗 We
offered the house for sale.
offer document
a formal document where a company offers
to buy shares at some price as part of a
take-over bid
offered market
market where there are more sellers than
buyers
offer for sale
situa-tion in which a company advertises new
shares for sale to the public as a way of
launching itself on the Stock Exchange
(NOTE: The other ways of launching a
com-pany are a ‘tender’ or a ‘placing.’)
offering circular
noun a document which gives information
about a company whose shares are being
sold to the public for the first time
offeror
an offer
offer period
during which a takeover bid for a company
is open
offer price
which investors buy new shares or units in a
unit trust The opposite, i.e the selling price,
is called the ‘bid price’, the difference
between the two is the ‘spread’
Office of Fair Trading
treidiŋ/ noun a department of the UK
gov-ernment that protects consumers against
unfair or illegal business Abbreviation OFT
Office of Management and Budget
Office of Management and Budget
US the department of the US government
that prepares the federal budget
Abbrevia-tion OMB
Office of Thrift Supervision
θrift supə| / noun US a department
of the US government which regulates the
savings and loan associations Abbreviation
OTS
official books of account
bυks əv ə|kaυnt/ plural noun the official
financial records of an institution
Official List
publication by the London Stock Exchange
of the highest and lowest prices recorded for
each share during the trading session
official receiver
a government official who is appointed to
run a company which is in financial
difficul-ties, to pay off its debts as far as possible and
to close it down 쑗 The company is in the
hands of the official receiver Also called
receiver
official return
official reportoffload
which you do not want to someone elseoffset
against another so that they cancel eachother out 쑗 to offset losses against tax 쑗
Foreign exchange losses more than offset profits in the domestic market (NOTE: off-
setting – offset)
offset account
account established to allow the grossamount of another account to be reducedoffsetting error
accounting error that cancels out anothererror
offshore
an island or in the sea near to land 쑗 an
off-shore oil field 쑗 an offshore oil platform 2.
on an island which is a tax haven 3. basedoutside a country, especially in a tax havenoffshore banking
noun banking in a tax havenoffshore finance subsidiary
fainns səb|sidiəri/ noun a company ated in another country to handle financialtransactions, giving the owning companycertain tax and legal advantages in its homecountry (NOTE: The US term is offshore
cre-financial subsidiary.)
offshore financial centre
nnʃəl sentə/ noun a country or otherpolitical unit that has banking laws intended
to attract business from industrialisednations
offshore fund
that is based overseas, usually in a countrythat has less strict taxation regulationsoff-the-shelf company
kmp(ə)ni/ noun a company which hasalready been registered by an accountant orlawyer, and which is ready for sale to some-one who wants to set up a new companyquickly
OFT
OFT abbreviation Office of Fair Tradingold age pension
noun a state pension given to people oversome age (currently to a man who is 65 or to
a woman who is 60)old age pensioner
penʃ(ə)nə/ noun a person who receives theretirement pension Abbreviation OAP
OMB
OMB abbreviation Office of Managementand Budget
Trang 6155 open-market value
ombudsman
official who investigates complaints by the
public against government departments or
other large organisations (NOTE: The plural
is ombudsmen.)
‘…radical changes to the disciplinary
sys-tem, including appointing an ombudsman
to review cases where complainants are
not satisfied with the outcome, are
pro-posed in a consultative paper the Institute
of Chartered Accountants issued last
month’ [Accountancy]
on account
oncosts
costs that cannot be charged directly to a
particular good or service and must be
apportioned across the business
on demand
used to describe an account from which
withdrawals may be made without giving a
kmp(ə)ni/ noun a business run by one
person alone with no staff or partners
one-off
only once 쑗 one-off item 쑗 one-off deal 쑗
one-off payment
one-sided
favouring one side and not the other in a
negotiation
one-year money
money invested for one year
open
open /əυpən/ adjective 1. at work, not
closed 쑗 The store is open on Sunday
morn-ings 쑗 Our offices are open from 9 to 6 쑗
They are open for business every day of the
week. 2. ready to accept something쐽 verb 1.
to start a new business 쑗 She has opened a
shop in the High Street 쑗 We have opened a
branch in London. 2. to start work, to be at
work 쑗 The office opens at 9 a.m 쑗 We open
for business on Sundays. 3. to begin
some-thing 4. to set something up or make
some-thing available 쑗 to open a bank account 쑗
to open a line of credit 쑗 to open a loan 5.왍
shares opened lower share prices were
lower at the beginning of the day’s trading
‘…after opening at 79.1 the index touched
a peak of 79.2 and then drifted to a low of
78.8’ [Financial Times]
open account
account where the supplier offers the
pur-chaser credit without security
open book management
/ noun a management
method that gives staff open access to
finan-cial and operational information, with theaim of giving everyone a stake in increasingproduction
open cheque
as uncrossed cheque
open credit
given to good customers without securityopen-ended
with no fixed limit or with some items notspecified 쑗 They signed an open-ended agreement 쑗 The candidate was offered an open-ended contract with a good career plan (NOTE: The US term is open-end.)
open-ended credit
kredit/ noun same as revolving credit
open-ended fund
noun a fund such as a unit trust where tors buy units, the money paid beinginvested in a range of securities This is asopposed to a closed fund, such as an invest-ment trust, where the investor buys shares inthe trust company, and receives dividends.open-ended investment company
inves-open-ended investment company
/əυpən endid in|vestmənt kmp(ə)ni/
noun a form of unit trust, in which the tor purchases shares at a single price, asopposed to the bid-offer pricing system used
inves-by ordinary unit trusts Abbreviation OEIC
open-ended management company
open-ended management company
trst/ noun a fund in which investors canfreely buy and sell units at any timeopening balance
noun a balance at the beginning of anaccounting period
opening balance sheet
bləns ʃit/ noun an account showing anorganisation’s opening balances
opening entry
the first entry in an accountopening price
price at the start of a day’s tradingopening stock
on a balance sheet, the closing stock at theend of one accounting period that is trans-ferred forward and becomes the openingstock in the one that follows (NOTE: The US
term is beginning inventory.)
open market
market where anyone can buy or sellopen-market value
vlju/ noun the price that an asset or
Trang 7secu-operate 156
rity would realise if it was offered on a
mar-ket open to all
operate
The new terms of service will operate from
January 1st 쑗 The rules operate on inland
postal services only.
‘…the company gets valuable restaurant
locations which will be converted to the
family-style restaurant chain that it
oper-ates and franchises throughout most parts
of the US’ [Fortune]
operating
running of a business or of a machine
‘…the company blamed over-capacity and
competitive market conditions in Europe
for a £14m operating loss last year’
[Financial Times]
operating activities
tivitiz/ plural noun those activities that a
business engages in by reason of its being
the type of business it is, as opposed to
non-operating activities such as investment
operating budget
noun a forecast of income and expenditure
over a period of time
operating budget sequence
operating budget sequence
of a master budget that records the
acquisi-tion and use of resources
operating costing
noun costing which is based on the costs of
services provided
operating costs
plu-ral noun the costs of the day-to-day
activi-ties of a company Also called operating
expenses, running costs
operating cycle
noun the time it takes for purchases of
mate-rials for production to generate revenue
from sales
operating expenses
spensiz/ plural noun same as operating
costs
operating lease
lease which does not require the lessee
com-pany to show the asset acquired under the
lease in its balance sheet, but the annual
rental charge for such assets must be
dis-closed in a note to the accounts
operating leverage
/ noun the ratio of a business’s
fixed costs to its total costs As the fixed
costs have to be paid regardless of output,
the higher the ratio, the higher the risk of
losses in an economic downturn
operating loss
loss made by a company in its usual business
operating margin
/ noun a measurement of the portion of a company’s revenue that is leftover after variable costs of production havebeen met
pro-operating performance ratio
operating performance ratio
/ɒpəreitiŋ pə|fɔməns reiʃiəυ/ noun aratio of profitability to sales
operating profit
noun the difference between a company’srevenues and any related costs and expenses,not including income or expenses from anysources other than its normal methods ofproviding goods or a service
operating revenue
revənju/ noun the amount of income erated as a result of a company’s normalbusiness operations
gen-operating risk
risk of having a high operating leverageoperating statement
steitmənt/ noun a financial statementwhich shows a company’s expenditure andincome, and consequently its final profit orloss 쑗 The operating statement shows unex-
pected electricity costs 쑗 Let’s look at the operating statement to find last month’s expenditure.
operation
activity or a piece of work, or the task of ning something 쑗 the company’s operations
run-in West Africa 쑗 He heads up the operations
in Northern Europe. 2. 왍 in operation
working or being used 쑗 The system will be
in operation by June 쑗 The new system
came into operation on January 1st.
‘…a leading manufacturer of business,industrial and commercial productsrequires a branch manager to head up itsmid-western Canada operations based in
Winnipeg’ [Globe and Mail (Toronto)]
operational
referring to the day-to-day activities of abusiness or to the way in which something isrun
operational audit
ɔdit/ noun a systematic review of the tems and procedures used in an organisation
sys-in order to assess whether they are besys-ing ried out efficiently and effectively Alsoknown as management audit, operations audit
car-operational budget
/ noun same as operating budget
operational costs
kɒsts/ plural noun the costs of running abusiness
Trang 8157 ordinarily resident
operational gearing
iəriŋ/ noun a situation where a company
has high fixed costs which are funded by
borrowings
operational planning
plniŋ/ noun the planning of how a
busi-ness is to be run
operational research
stʃ/ noun a study of a company’s way of
working to see if it can be made more
effi-cient and profitable
operations review
vju/ noun an act of examining the way in
which a company or department works to
see how it can be made more efficient and
profitable
operation time
noun the time taken for a business operation
to be completed
opinion
advice 쑗 the lawyers gave their opinion 쑗 to
ask an adviser for his opinion on a case
opportunity cost
noun 1. the cost of a business initiative in
terms of profits that could have been gained
through an alternative plan 쑗 It’s a good
investment plan and we will not be deterred
by the opportunity cost Also called
alterna-tive cost 2. the value of another method of
investment which could have been used,
instead of the one adopted
opportunity cost approach
tjuniti kɒst ə|prəυtʃ/ noun the use of the
concept of opportunity cost in business
deci-sion-making
optimal capital structure
kpit(ə)l strktʃə/ noun the optimal
range for a company’s capital structure
optimise
allocate such things as resources or capital
as efficiently as possible
optimum
market offers optimum conditions for sales.
option
buy or sell something, such as a security,
within a fixed period of time at a fixed price
왍 to take up an option or to exercise an
option to accept the option which has been
offered and to put it into action 쑗 They
exer-cised their option or they took up their
option to acquire sole marketing rights to
the product.
option contract
noun a right to buy or sell a specific number
of shares at a fixed price
option dealing
activity of buying and selling share options
option trading
the business of buying and selling shareoptions
order
records such as filing cards or invoices arearranged 쑗 in alphabetical or numerical order 2. an official request for goods to besupplied 쑗 to give someone an order or to place an order with someone for twenty fil- ing cabinets 쑗 The management ordered the workforce to leave the factory 왍 to fill an
order, to fulfil an order to supply items
which have been ordered 쑗 We are so
under-staffed we cannot fulfil any more orders before Christmas 왍 items available to
order only items which will be
manufac-tured only if someone orders them 왍 on
order ordered but not delivered 쑗 This item
is out of stock, but is on order. 3. a documentwhich allows money to be paid to someone
쑗 She sent us an order on the Chartered Bank 4 (Stock Exchange) an instruction to
a broker to buy or sell 5.왍 pay to Mr Smith
or order pay money to Mr Smith or as he
orders 왍 pay to the order of Mr Smith pay
money directly to Mr Smith or to his account
쐽 verb to ask for goods to be supplied 쑗
They ordered a new Rolls Royce for the aging director.
man-order book
which records orders receivedorder-driven system
sistəm/, order-driven market /ɔdə
driv(ə)n mɑkit/ noun a price system on astock exchange where prices vary according
to the level of orders Compare driven system
quote-order entry
proc-ess of entering information on orders into aprocessing system
order fulfilment
noun the process of supplying items whichhave been ordered
ordering costs
noun the total of the costs involved in ing a purchase order, including telephoneand stationery costs
mak-order processing
noun the work of dealing with ordersorder receipt time
noun the interval between the receipt of anorder and the point at which it is ready to bedespatched
ordinarily resident
rezid(ə)nt/ adjective normally living in acountry 쑗 Mr Schmidt is ordinarily resident
in Canada
Trang 9ordinary activities 158
ordinary activities
tivitiz/ plural noun the usual trading of a
company, that is, what the company usually
does
ordinary interest
noun annual interest calculated on the basis
of 360 days, as opposed to ‘exact interest’
which is calculated on 365 days
ordinary resolution
luʃ(ə)n/ noun a resolution put before an
AGM, usually referring to some general
pro-cedural matter, and which requires a simple
majority of votes to be accepted
ordinary share capital
ʃeə kpit(ə)l/ noun the capital of a
com-pany in the form of money paid for ordinary
shares
ordinary shareholder
ʃeəhəυldə/ noun a person who owns
ordi-nary shares in a company
ordinary shares
plu-ral noun shares that entitle the holder to
receive a dividend after the dividend on
pref-erence shares has been paid (NOTE: The US
term is common stock.)
ordinary stock
shares
organic growth
same as internal growth
organisation
organization noun 1. a way of arranging
something so that it works efficiently 쑗 the
organisation of the head office into
depart-ments 쑗 The chairman handles the
organi-sation of the AGM 쑗 The organisation of
the group is too centralised to be efficient. 2.
a group or institution which is arranged for
efficient work
‘…working with a client base which
includes many major commercial
organi-zations and nationalized industries’
[Times]
organisational
organizational adjective referring to the
way in which something is organised 쑗 The
paper gives a diagram of the company’s
organisational structure.
organisational chart
zeiʃ(ə)n(ə)l tʃɑt/ noun a chart that shows
the relationships of people in an
organisa-tion in terms of their areas of authority and
responsibility
organisation and methods
organisation and methods
/ɔ ənaizeiʃ(ə)n ən meθədz/ noun a
process of examining how an office works,
and suggesting how it can be made more
efficient Abbreviation O & M
organisation chart
tʃɑt/ noun same as organisational chart
organisation costs
kɒsts/ plural noun the costs associated withsetting up a business, e.g legal fees andbusiness filing fees
organise
set up a system for doing something 쑗 The company is organised into six profit centres.
쑗 The group is organised by sales areas. 2.
to arrange something so that it works
‘…we organize a rate with importers whohave large orders and guarantee themspace at a fixed rate so that they can plan
their costs’ [Lloyd’s List]
original cost
the total cost of acquiring an assetoriginal entry
the act of recording a transaction in a journalother capital
cap-ital that is not listed in specific categoriesother long-term capital
kpit(ə)l/ noun long-term capital that isnot listed in specific categories
other long-term liabilities
tm laiə|bilitiz/ plural noun obligationswith terms greater than one year on whichthere is no charge for interest in the next yearother short-term capital
tm kpit(ə)l/ noun short-term capitalthat is not listed in specific categoriesOTS
OTS abbreviation Office of Thrift sion
Supervi-out
out /aυt/ adverb왍 we are £20,000 out in
our calculations we have £20,000 too much
or too littleoutgoings
money which is paid outoutlay
expenditureoutlook
going to happen in the future 쑗 The
eco-nomic outlook is not good 쑗 The stock ket outlook is worrying.
mar-‘American demand has transformed theprofit outlook for many European manu-
facturers’ [Duns Business Month]
out-of-date cheque
noun a cheque which has not been clearedbecause its date is too old, normally morethan six months
out of pocket
adverb having paid out money personally 쑗
The deal has left me out of pocket.
out-of-pocket expenses
pɒkit ik|spensiz/ plural noun an amount
of money paid back to an employee who has
Trang 10159 overdue
spent his or her personal money on company
business
output
company, person, or machine produces 쑗
Output has increased by 10% 쑗 25% of our
output is exported.
‘…crude oil output plunged during the last
month and is likely to remain near its
present level for the near future’ [Wall
Street Journal]
output per hour
the amount of something produced in one
hour
output tax
charged by a company on goods or services
sold, and which the company pays to the
noun same as non-executive director
outsource
outside a company or business to do the
work that is needed
‘The services unit won outsourcing
con-tracts from the Environmental Protection
Agency and NASA, which the company
says played a significant part in the
increase.’ [InformationWeek]
outsourcing
practice of obtaining services from
special-ist bureaux or other companies, rather than
employing full-time staff members to
pro-vide them 2. the transfer of work previously
done by employees of an organisation to
another organisation, usually one that
spe-cialises in that type of work (NOTE: Things
that have usually been outsourced in the
past include legal services, transport,
cater-ing, and security, but nowadays IT services,
training, and public relations are often
added to the list.)
‘…organizations in the public and private
sectors are increasingly buying in
special-ist services – or outsourcing – allowing
them to cut costs and concentrate on their
core business activities’ [Financial Times]
outstanding
yet paid or completed
outstanding cheque
tʃek/ noun a cheque which has been
writ-ten and therefore has been entered in the
company’s ledgers, but which has not been
presented for payment and so has not been
debited from the company’s bank account
noun a situation where the actual overheadincurred is less than the absorbed overhead.Opposite underabsorption
overall
including everything 왍 the company
reported an overall fall in profits the
com-pany reported a general fall in profitsoverall balance of payments
overall balance of payments
/əυvərɔl bləns əv peimənts/ noun thetotal of current and long-term balance ofpayments
overall capitalisation rate
kpit(ə)lai|zeiʃ(ə)n reit/ noun net ating income, other than debt service,divided by value
oper-overall return
the aggregate of all the dividends receivedover an investment’s life together with itscapital gain or loss at the date of its realisa-tion, calculated either before or after tax It
is one of the ways an investor can look at theperformance of an investment
overborrowed
referring to a company which has very highborrowings compared to its assets, and hasdifficulty in meeting its interest paymentsovercapitalised
overcapitalized adjective referring to acompany with more capital than it needsovercharge
which is higher than it should be 쑗 to pay back an overcharge 쐽 verb /əυvə| /
to ask someone for too much money 쑗 They
overcharged us for our meals 쑗 We asked for a refund because we’d been over- charged.
overdraft
amount of money which a company or son can withdraw from a bank account, withthe bank’s permission, despite the fact thatthe account is empty 쑗 The bank has allowed me an overdraft of £5,000 Abbrevi-
per-ation O/D (NOTE: The US term is overdraft
protection.)왍 we have exceeded our
over-draft facilities we have taken out more than
the overdraft allowed by the bank 2. a tive amount of money in an account, i.e asituation where a cheque is more than themoney in the account on which it is drawnoverdraw
more money from a bank account than there
is in itoverdue
been paid on time
Trang 11overdue account 160
overdue account
noun an account whose holder owes money
that should have been paid earlier
overestimate
think something is larger or worse than it
really is 쑗 She overestimated the amount of
time needed to fit out the factory 쑗 They
overestimated the costs of moving the offices
to central London.
overgeared
refer-ring to a company which has high
borrow-ings in comparison to its assets
overhang
quan-tity of shares or of a commodity or of unsold
stock available for sale, which has the effect
of depressing the market price
overhead absorption rate
əb|zɔpʃən reit/ noun a rate at which
pro-duction costs are increased to absorb higher
overhead costs
overhead budget
noun a plan of probable overhead costs
overhead cost variance
kɒst veəriəns/ noun the difference
between the overhead cost absorbed and the
actual overhead costs incurred, both fixed
and variable
overhead expenditure variance
overhead expenditure variance
/əυvəhed ik|spenditʃə veəriəns/ noun
the difference between the budgeted
over-head costs and the actual expenditure
overheads
indirect costs of the day-to-day running of a
business, i.e not money spent of producing
goods, but money spent on such things as
renting or maintaining buildings and
machinery 쑗 The sales revenue covers the
manufacturing costs but not the overheads.
(NOTE: The US term is overhead.)
overlap profit
profit which occurs in two accounting
peri-ods, i.e when two accounting periods
over-lap, and on which overlap relief can be
claimed
overpaid
much 쑗 Our staff are overpaid and
under-worked.
overpay
to someone or for something 쑗 We overpaid
the invoice by $245.
overpayment
act of paying too much
overrider
com-mission /əυvəraidiŋ kə|miʃ(ə)n/ noun a
special extra commission which is above all
other commissions
overseas
foreign countries 쑗 The profits from
over-seas are far higher than those of the home division.
overseas division
/ noun the section of a companydealing with trade with other countriesoverseas funds
plu-ral noun investment funds based in othercountries
overseas markets
plural noun markets in foreign countriesoverseas taxation
seiʃ(ə)n/ noun 쏡 double taxation, double taxation agreement
overseas trade
same as foreign trade
overspend
too much 왍 to overspend your budget to
spend more money than is allowed in yourbudget
overspending
act of spending more than is allowed 쑗 The board decided to limit the overspending by the production departments.
overstate
account a figure that is higher than the actualfigure 쑗 the company accounts overstate the
real profit
overstatement
the fact of entering in an account a figurethat is higher than the actual figureoverstock
bigger stock of something than is needed
‘Cash paid for your stock: any quantity,any products, overstocked lines, factory
seconds’ [Australian Financial Review]
overstocks
a surplus of stock 쑗 We will have to sell off the overstocks to make room in the ware- house.
over-the-counter market
kaυntə mɑkit/ noun a secondary market
in shares which are not listed on the mainStock Exchange
over-the-counter sales
kaυntə seilz/ plural noun the legal selling
of shares that are not listed in the officialStock Exchange list, usually carried out bytelephone
overtime
in addition to your usual working hours 쑗 to work six hours’ overtime 쑗 The overtime rate is one and a half times normal pay.
overtime pay
for extra time workedovertrading
situa-tion where a company increases sales and
Trang 12161 owners’ equity
production too much and too quickly, so that
it runs short of cash
overvalue
higher value to something or someone than
is right 왍 these shares are overvalued at
£1.25 the shares are worth less than the
£1.25 for which they are selling
‘…the fact that sterling has been
overval-ued for the past three years shows that
cur-rencies can remain above their fair value
for very long periods’ [Investors
noun a person who owns the property inwhich he or she lives
owners’ equity
the value of the shares in a company owned
by the owners of the company
Trang 13package deal
agreement which covers several different
things at the same time 쑗 They agreed a
package deal which involves the
construc-tion of the factory, training of staff, and
pur-chase of the product.
paid
paid /peid/ adjective 1. for which money
has been given 쑗 The invoice is marked
‘paid’. 2. referring to an amount which has
been settled 쑗 The order was sent carriage
paid.
paid-in capital
noun capital in a business which has been
provided by its shareholders, usually in the
form of payments for shares above their par
value
paid-up shares
shares which have been completely paid for
by the shareholders
paper
can represent money, e.g a bill of exchange
or a promissory note 2. shares in the form of
share certificates
paper gain
paper profit
‘…the profits were tax-free and the
inter-est on the loans they incurred qualified for
income tax relief; the paper gains were
rarely changed into spending money’
[Investors Chronicle]
paper loss
when an asset has fallen in value but has not
been sold Also called unrealised loss
paper millionaire
noun a person who owns shares which, if
sold, would be worth one million pounds or
dollars
paper money
pay-ments in paper form, e.g., cheques
paper offer
bid where the purchasing company offers its
shares in exchange for shares in the
com-pany being taken over, as opposed to a cash
offer
paper profit
on an asset which has increased in price but
has not been sold 쑗 He is showing a paper profit of £25,000 on his investment Also
called paper gain, unrealised profit
par
par /pɑ/ adjective equal, at the same priceparallel economy
noun same as black economy
parallel loan
as back-to-back loan
parameter
쑗 The budget parameters are fixed by the finance director 쑗 Spending by each depart-
ment has to fall within agreed parameters.
parcel of shares
noun a fixed number of shares which aresold as a group 쑗 The shares are on offer in parcels of 50.
parent company
noun a company which owns more than50% of the shares of another companyPareto’s Law
Effect /pə|ritəυ i|fekt/ noun the theorythat incomes are distributed in the same way
in all countries, whatever tax regime is inforce, and that a small percentage of a total
is responsible for a large proportion of value
or resources Also called eighty/twenty law
pari passu
phrase meaning ‘equally’ 쑗 The new shares will rank pari passu with the existing ones.
parity
equal 왍 the pound fell to parity with the
dollar the pound fell to a point where one
pound equalled one dollar 2. a situationwhen the price of a commodity, foreign cur-rency or security is the same in differentmarkets
‘…the draft report on changes in the national monetary system casts doubtabout any return to fixed exchange-rate
inter-parities’ [Wall Street Journal]
Parliamentary Public Accounts Committee
Parliamentary Public Accounts
kaυnts kə|miti/ noun a UK parliamentarycommittee established in 1961 to examinethat the sums of money agreed by Parlia-ment for public spending are properly spent