‘Liabilities’ is a section in the lower half of the balance sheet reflecting all forms of accounts payable and debt. Normal presentation divides the liabilities into short-term (less than one year) and long-term liabilities (amounts due after one year).

Long Term Debt – Financial Statement Presentation

Long-Term Debt

Long Term Debt is one of the multiple forms of capitalizing a business. It includes bonds, secured notes and mortgage notes. In the world of small business, the most common form of long term debt is secured notes, most likely with recourse. As an owner of a business you need to understand how this information is presented in your financial statements.