long-term debt

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Related to long-term debt: retained earnings, Long-term debt ratio

Long-term debt

An obligation having a maturity of more than one year from the date it was issued. Also called funded debt.

Long-Term Debt

Bonds, loans, and any other debt with a maturity of longer than one year. Long-term debt is used for capital outlays, which usually involves a business' need to buy the basic necessities for its operations, such as facilities and major assets. It is also called funded debt.

long-term debt


long-term debt

Technically, that portion of any debt that will come due after 1 year from the current date. A newly made 30-year mortgage would have 1 year of payments posted to shortterm debt on the accounting books of the borrower, and 29 years posted to long-term debt. In common parlance, though, it is simply any debt with a maturity greater than 1 year from the time of making.

References in periodicals archive ?
Gottschalks' long-term debt fell more than 40 percent in the most recent quarter, compared with the prior year.
Also, if a business that structures long-term debt to improve working capital does get hit with a drop in revenues, it is in a much better position to negotiate new demand loans or arrange alternative forms of short-term financing.
The cash flow adequacy ratio depicts the extent a company's cash from operations covers payments on long-term debt, purchases of assets and dividend payments.
Year over year, the tabletop supplier watched its long-term debt drop more than 20 percent.
Only the current portion of compensated absences should be recorded in government funds, while the remainder should be recorded in the general long-term debt account group.
The regional department store reduced its long-term debt by the end of the most recent quarter while total equity increased slightly.
As its equity builds, a company's capacity to add long-term debt grows apace.

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