The Law Dictionary

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LONG TERM DEBT Definition & Legal Meaning

Definition & Citations:

Some amount due from the balance sheet date for 12 months or longer. A bank loan, mortgage bonds, debenture, or other obligations not due for one year are several examples. In a bank’s balance sheet, long-term debt with its interest rate and date of maturity must be disclosed. This is a measure of a firm’s leverage. It is distinguished from long term liabilities. It may include services already paid as a long-term debt amount.


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