obligations

Definition

All the things you're legally, morally, or socially required to do, whether you want to or not. In finance, they're debts and contractual promises that keep accountants up at night. In life, they're the responsibilities that make you wonder if freedom is just an illusion. Basically, the adult version of homework that never stops coming.

Example Usage

Between my contractual obligations, family obligations, and financial obligations, I have approximately zero obligations to myself.

Source: Legal and financial terminology

Related Terms

Intermediate

going concern

The assumption that a company will continue operating for the foreseeable future rather than liquidating, which underpins how financial statements are prepared. When auditors question this assumption, update your résumé.

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A prolonged period when stock prices fall and investors pretend they saw it coming all along. Named after bears because, like encountering an actual bear, the best strategy is to play dead and hope it goes away before it eats your retirement fund.

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prepaid expenses

Payments made in advance for goods or services to be received in future periods, recorded as assets until consumed. It's money you've spent that accountants insist you haven't actually spent yet.

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non-recurring charge

An expense that supposedly happens only once but mysteriously appears in financial statements every single quarter. It's management's favorite way to exclude bad news from 'adjusted' earnings while claiming it's temporary.

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Depreciation

The accounting practice of acknowledging that everything you own is slowly becoming worthless, which is depressing when applied to assets and relatable when applied to your car. It's basically writing a slow obituary for office furniture.

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Advanced

capital adequacy ratio

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iirc

if I recall correctly...