Debt Service

Debt service refers the principal and interest portion of all long-term liabilities combined. Debt service value is customarily expressed as the amount due in one accounting period, amounts due over several accounting periods and those amounts due well in the future.

Long Term Debt – Explanation and General Understanding

Long-Term Debt

In the arsenal of capitalizing a business operation, long term debt serves as one of the primary sources of capital. If you are an owner of a small business, you need to understand the relationship this source has to the overall financial status of the company. Too much debt and the owner is burden by the cash outlays to service.

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