indebtedness

Intermediate đź’° Finance / Accounting

Definition

The state of owing money to someone else, quantified in dollars and anxiety, often measured both as a total amount and as a perpetual source of stress. In finance and accounting, it's a cold, hard number on a balance sheet; in real life, it's the reason you check your bank account with one eye closed. Whether it's student loans, mortgages, or credit cards, it's the gift that keeps on taking.

Example Usage

The company's total indebtedness exceeded $50 million, prompting concerns from investors about debt servicing ability.

Source: Common financial terminology

Related Terms

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convertible

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restatement

The correction of previously issued financial statements due to errors, fraud, or accounting policy changes—corporate speak for 'we messed up, never mind what we told you before.' It's never a good sign when a company announces one.

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fallen angel

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assets

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commercial paper

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taxes

Money extracted by the government in exchange for services you'll never see itemized on a receipt. Unlike paying for a latte, you don't get to choose the size, flavor, or whether you want it at all. The financial relationship status between you and your government: it's complicated, and it's definitely not negotiable.

đź’° Finance / Accounting

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