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Long-term liabilities
       
 
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Long-term liabilities

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Long-term liabilities
Expenses, loans, and accounts payables due after one year or more.
    
It is  recorded on the Balance Sheet, a company's liabilities for leases, Bond repayments and other items due in more than one year.  A company's Long-term liabilities are accounted for by its Debt obligations to other parties that last longer than a year. In accounting, the Long-term liabilities are shown on the right wing of the balance-sheet representing the sources of funds, which are generally bounded in form of capital assets.
    
Examples of Long-term liabilities are debentures, mortgage loans and other bank loans ( not all bank loans are Long term as not all are paid over a period greater than a year, the example is bridging loan.)
    
By convention, the portion of Long-term liabilities that must be paid in the coming 12-month period are classified as current liabilities. For example, a loan for which two payments of $1000 are due, one in the next twelve months and the other after that date, would be 'split' into two: $1000 would be classified as a current liability, and $1000 as a Long-term liability (note this example is simplified, and does not take into account any Interest or discounting effects, which may be required depending on the accounting rules).
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