ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Cash Obligations means, as at any time, the Obligations of the Company or any Guarantor, as applicable, to the extent then payable in cash.

Detailed explanation-2: -A company’s obligation to pay money to other people or businesses in the future is called a liability. This means that the company will not be able to make money in the future. A liability is a way for a business to get money different from equity.

Detailed explanation-3: -In the world of accounting, a financial liability is also an obligation but is more defined by previous business transactions, events, sales, exchange of assets or services, or anything that would provide economic benefit at a later date.

Detailed explanation-4: -Obligation Examples For example, if an individual fails to make their car payments regularly, the auto company will repossess the car. Taxes, too, are a form of obligation, and failing to meet them results in large fines or imprisonment.

Detailed explanation-5: -What is accounting obligation? An enterprise which is subject to the accounting obligation must prepare a set of annual accounts comprising at least an income statement, balance sheet and notes. Larger enterprises must also prepare an annual report.