Long-term debt

Long-term debt is a financial obligation for which payments will be required after one year from the measurement date. This information is used by investors, creditors, and lenders when examining the long-term liquidity of a business.

Long-term debt is classified in a separate line item in a company's balance sheet. Examples of long-term debt are those portions of bonds, loans, and leases for which the payment obligation is at least one year in the future.

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The Balance Sheet