AE 12 INTERMEDIATE ACCOUNTING

1. liability - is something a person or company owes, usually a sum of money.

2. obligation - is a commitment to pay a third party based on an underlying
contract, such as a purchase order, mortgage, or bond issuance.
3. Legal - Being allowed or prescribed by law.
4. Economic - is a branch of the social sciences that is concerned with the
production, consumption, and transfer of resources.
5. Resources - is an accounting system that deals with stocks and stock changes of
natural assets, comprising biota, subsoil assets, water and land with their aquatic
and terrestrial ecosystems.
6. Executor – Something that has not yet been fully performed or completed and is
therefore considered imperfect or unassured until its full execution.
7. Contracts - a promise enforceable by law. The promise may be to do something
or to refrain from doing something.
8. Right - adherence or obedience to moral and legal principles and authority that
which is morally, legally, or ethically proper: to know right from wrong.
9. Relevance - is the concept that the information generated by an accounting
system should impact the decision-making of someone perusing the information.
10. Payable - are amounts due to vendors or suppliers for goods or services
received that have not yet been paid for.
11. Financial - is defined as to provide money or credit for something.
12. Instrument - is a contract or medium by which something of value is transferred,
held, or accomplished.
13. Accrued - is an accounting adjustment used to track and record revenues that
have been earned but not received, or expenses that have been incurred but not
paid.
14. Unearned - is money received by an individual or company for a service or
product that has yet to be provided or delivered.
15. Warranty - is the cost that a business expects to or has already incurred for the
repair or replacement of goods that it has sold.