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 firm's leverage, and is distinguished from long term liabilities which may include supply of services already paid for.
Use 'long term debt' in a Sentence
We had to ay off some of our long term debt, or we would find ourselves in a pretty bad position economically.
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.
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