Long-term liabilities

Definition

Long-term liabilities are financial obligations of a business that are due more than one year in the future. These include loans, mortgage payments, or bonds payable that do not require settlement within the next 12 months.

Related terms

Bonds Payable:

Bonds payable are long-term debt instruments issued by companies to raise capital, with the promise to pay back the principal along with interest at a future date.

Mortgage Payable: A mortgage payable is a type of long-term liability where the borrower agrees to pay back a loan used to purchase property, typically through monthly payments over a set period of years.

Accounts Payable:

Accounts payable represents short-term financial obligations to suppliers or creditors for goods and services received but not yet paid for by the business