Simple English definitions for legal terms
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Long-term debt refers to a type of debt that is not due for payment within the next year. It is a liability on a claim, which means a specific sum of money that is owed by agreement or otherwise.
Examples of long-term debt include:
These examples illustrate long-term debt because they are all debts that are not due for payment within the next year. For instance, a bond is a type of long-term debt that is issued by a company or government and has a maturity date of more than one year. This means that the bondholder will receive their principal investment plus interest after a certain period of time, usually several years.