Items

• operating activities

  Cash inflows and outflows brought about by the buying and selling of goods or services, that is to say, by the company’s main operations.
• operating profit

  The profit that the company makes from its main business operations after deducting its operating expenditure.
• Output VAT

  It is a type of tax that the VAT vendor charges to its customers and then pays it over to SARS.
• outstanding amount

  Amount that still needs to be paid.
• overdue account

  An amount that was not settled within the agreed-upon due date.
• outstanding deposit

  It is the deposit that was made but has not yet reflected on the recipient’s account.
• overdraft

  An agreement between the account holder and the financial institution to allow the account holder to withdraw more money than the account holder has in the account.
• overheads

  Costs not directly related to the production of specific goods or services but are necessary for the functioning of the factory.
• overstated

  A situation where the figures are recorded as higher than they actually are.
• owing

  It is an obligation to pay a debt.
• own business

  A business that is owned by a natural person/individual.
• owner’s equity

  It is the value of the business that belongs to the owners after all the liabilities have been settled.
• ownership

  It is the legal and financial rights in a business or asset.
• packaging materials

  It is the items used for storage, protection of valuables and also for putting in the items to be sold.
• partnership

  It is a form of a business where two or more people operate a business as co-owners.
• par value

  It is the nominal or original price of the instrument.
• payables

  It is the amount of money that the company owes for goods or services received from suppliers.
• PAYE (Pay-as- you-earn)

  It is the income tax that is collected from the employees.
• paymaster

  It is the entity or individual responsible for distributing payments of salaries to the employees.
• payments

  It is the act of giving money to the other party in exchange for goods or services.
• payroll

  It is the calculation and distribution of wages and salaries to employees for a specific period.
• payroll register

  It is a document that has information about the employees’ salaries/wages and the deduction
• payslip

  Document that contains employee’s gross pay, deductions and net pay and the personal details of the employee.
• periodic financial statement

  Reports that are prepared and presented to summarise financial performance and position of the company for a specific period of time.
• periodic system

  It is an inventory system where a company only updates records periodically instead of continuously.