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Glossary of Terms

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Objectivity:


Impartiality and intellectual honesty.


On-line processing:


The form of data processing in which remote terminals are linked to a central processor, and files are updated virtually as transactions occur.


Operating capacity:


The upper limit of a company's productive output capability, given its existing resources.


Operating expenses:


Those expenses, other than the cost of goods sold, which are incurred in running a business.


Other assets:


All of the assets owned by a company other than current assets and property, plant, and equipment.


Other revenues and expenses:


The section of a classified income statement that includes non-operating revenues and expenses.


Owner's equity:


The claims by an owner against the assets of a business. Also called residual equity.


Owner's investments:


The assets that the owner puts into a business.


Owner's withdrawals:


The assets that the owner takes out of a business.