long term liability



Obligation payable in goods or services at a future period more than 12 months away from today or the date of balance sheet. A firm must disclose its long-term liabilities in its balance sheet with their interest rates (or other charges) and date of maturity.

Use long term liability in a sentence

  • Vista Entertainment's president and CEO John Myers Jr has announced that the recently fledgling animation production company will now be able to reduce its long term liability by fifty percent within the next twelve months thanks to the huge success of their latest box office hit "Sky Dog."

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  • We decided to reduce the long term liability so our financial statements and ratios would be much more attractive to potential investors.

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  • If you are going to take out some credit you must make sure that you will be able to pay off that long term liability.

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