Long-term debt definition
/What is 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.
Presentation of Long-Term Debt
Long-term debt is classified in a separate line item in a company's balance sheet, in the long-term liabilities section. As portions of long-term debt become due for payment, they are reclassified as short-term debt.
Examples of Long-Terms Debt
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.