Long term debt,
Definition of Long term debt:
Amount owed for a period exceeding 12 months from the date of the balance sheet. It could be in the form of a bank loan, mortgage bonds, debenture, or other obligations not due for one year. A firm must disclose its long-term debt in its balance sheet with its interest rate and date of maturity. Amount of long-term debt is a measure of a firms leverage, and is distinguished from long term liabilities which may include supply of services already paid for.
How to use Long term debt in a sentence?
- You should try to make sure that you do not take on any long term debt that you may not be able to pay off.
- When Carol and Tom decided to try the housing market for a new home, they knew part of the process involved repaying long term debt to the mortgage company.
- We had to ay off some of our long term debt , or we would find ourselves in a pretty bad position economically.
Meaning of Long term debt & Long term debt Definition