Hi everyone! I’m studying accounting and came across the term long-term liability. I understand it has something to do with debts that extend beyond one year, but I’m still a bit confused about what types of obligations fall under this category. Could someone give a simple explanation or examples? Thanks in advance!
What is long-term liability?
- Thread starter kebido
- Start date
A long-term liability is a financial obligation a company must pay after more than one year. Examples include long-term loans, bonds payable, lease obligations, and pension liabilities. These obligations help finance major investments and are listed on the balance sheet separate from short-term (current) liabilities. Hope you found your answer.
A financial commitment that a business must fulfill after more than a year is known as a long-term liability. Long-term loans, bonds payable, leasing commitments, and pension liabilities are a few examples. These commitments, which are shown on the balance sheet apart from short-term (current) liabilities, aid in financing significant investments. I hope you've found the solution.
Rick_Grimes
Member
Any financial commitment a business has that is due after more than a year is referred to as a long-term liability. Examples of such obligations include loans, mortgages, bonds payable, and long-term leases. It displays the amount of long-term debt that a company will eventually have to pay back.
nikhilrajoria
Member
Financial obligation of a company owed previously to the reporting time, the liability, which is one year or longer, until a particular date (e.g. bonds payable or long-term loans) are known as long-term liabilities. It is included in the balance sheet of the company and it assists the company to indicate its responsibilities in the long run after the current liabilities.