Long-term liabilities

Long-term liabilities are those obligations of a business that are not due for payment within the next twelve months. These obligations are usually some form of debt; if so, the terms of the debt agreements are typically included in the disclosures that accompany the financial statements. Deferred tax liabilities, deferred compensation, and pension obligations may also be included in this classification.

This information is used by investors, creditors, and lenders when examining the long-term liquidity of a business.

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The Balance Sheet