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 interest-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 the repayment is an immediate concern.
Short-Term Debt falls due within the current fiscal year (or less than 12 months in the future).
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.