This glossary uses Visual Finance™ to bring financial terms to life. Each example shows data from the Round Number Company, a fictional business with simplified figures to make learning easier. For more details, visit 'How to Read Visual Finance'.
Long-term Debt is the portion of Long-Term Liabilities that is related to borrowing money (i.e. bank Loans) - it is interesting bearing, and it is initially taken for a period greater than 1 year.
However, the Current Portion of Long-term Debt (i.e. that portion falling due within 12 months of the Balance Sheet date) is reclassified as Short-term Debt because repayment is an immediate concern.
The above is our generic explanations of common corporate financial terminology. Actual meanings can vary widely from company to company; in order to have the correct internal definition you need to ask your Finance Department, "What do you mean by that?"
term list.