What is long-term debt?

Answer Long-term debt is any liability that is due in over one year. Short-term debt is any liability that is due in less than one year.Types of Business FinancingA business usually finances in two ways--... Read More »

Top Q&A For: What is long-term debt

Is long-term debt a liability?

Long-term debt is a liability disclosed on the company's balance sheet under "Long-Term Liabilities." Long-term debt is a liability to the company because it owes money to another entityReferences:... Read More »

Characteristics of Long-Term Debt?

A business can have different types of debt, but not all debt is created equal. Unsecured debt refers to debt that is not linked to a physical asset. A good example of unsecured debt is a credit ca... Read More »

Amortization of Long-Term Debt?

Long-term debt must always be amortized, but the methods and reasons can differ. For instance, businesses that have long-term debt--the borrower--often amortize their loans out as part of their acc... Read More »

Why does a company use long-term debt?

A company commonly uses long-term debt to finance major capital purchases and investments. Like individual consumers, companies may be able to finance major purchases now and use future earnings to... Read More »