Long Term Liabilities

Long Term Liabilities are liabilities or debt obligations of the company which are not expected to be liquidated within the normal operating cycle of the business.  The most common types of long term liabilities that show on the balance sheet include:

• Bonds Payable
• Lease Obligations
• Pension Obligations
• Deferred Income Taxes

In general, long term liabilities include:

• Future obligations of the company that occur as part of the normal operating cycle such as pension funding or deferral of income taxes.
• Financing arrangements whereby additional assets are acquired.