What Are Ordinary and Necessary Expenses (O & NE)? Ordinary and necessary expenses are expenses incurred by individuals as the cost of owning a business or carrying on a trade. “Ordinary and necessary” expenses are categorized as such for income tax purposes, and these expenses are generally considered tax deductible in the year they are incurred. These
What Does OAPEC Mean? The Organization of Arab Petroleum Exporting Countries (OAPEC) is an inter-governmental organization based in Kuwait. OAPEC fosters cooperation among its 11-member Arab oil-exporting nations. Understanding OAPEC OAPEC was established in 1968 by Kuwait, Libya, and Saudi Arabia. Its other members include Algeria, Bahrain, Egypt, Iraq, Qatar, Syria, Tunisia, and the United Arab Emirates. Although
What Is the Old-Age, Survivors, and Disability Insurance (OASDI) Program? The Old Age, Survivors, and Disability Insurance (OASDI) program is the official name for Social Security income in the United States. The federal OASDI tax noted on your paycheck funds this comprehensive federal benefits program that provides benefits to retired adults and people with disabilities—and to
What Is the Obelisk Consensus Algorithm? Obelisk is a blockchain consensus algorithm used by the Skycoin ecosystem, designed to eliminate the shortcomings of proof-of-work (PoW) and proof-of-stake (PoS) algorithms. According to its creators, Obelisk also reduces the need for mining, significantly improves transaction speed, and delivers enhanced security. Key Takeaways Obelisk is the proprietary blockchain
What Is Obligatory Reinsurance? Obligatory reinsurance is a treaty that requires an insurer to automatically send all policies on its books that fall within a set list of criteria to a reinsurer. Under the terms of an obligatory reinsurance agreement, also called an automatic treaty, the reinsurer is obliged to accept these policies. Understanding Obligatory
What Is Off-Balance Sheet Financing (OBSF)? The term off-balance sheet (OBSF) financing refers to an accounting practice that involves recording corporate assets or liabilities in such a way that doesn’t make them appear on a company’s balance sheet. The practice is used to keep debt-to-equity (D/E) and leverage ratios low, especially if the inclusion of a large expenditure would break
What Is Obsolete Inventory? Obsolete inventory is a term that refers to inventory that is at the end of its product life cycle. This inventory has not been sold or used for a long period of time and is not expected to be sold in the future. This type of inventory has to be written-down or
What Is the Options Clearing Corporation (OCC)? The Options Clearing Corporation (OCC) is an organization that acts as both the issuer and guarantor for options and futures contracts. The largest equity derivatives clearing organization in the world, it operates under the jurisdiction of the Commodities Futures Trading Commission (CFTC) and the U.S. Securities and Exchange
What Is the Occupancy Rate? Occupancy rate is the ratio of rented or used space to the total amount of available space. Analysts use occupancy rates when discussing senior housing, hospitals, bed-and-breakfasts, hotels, and rental units, among other categories. In a call center, occupancy rate refers to the amount of time agents spend on calls compared
What is a One-Cancels-the-Other Order (OCO) A one-cancels-the-other (OCO) order is a pair of conditional orders stipulating that if one order executes, then the other order is automatically canceled. An OCO order often combines a stop order with a limit order on an automated trading platform. When either the stop or limit price is reached
