Balance Sheet – Long-Term Liabilities

The long-term liabilities section of the balance sheet shows the obligations your company has that will take longer than a year to pay. As I stated in my previous post, the short-term portion (due in less than a year) of long-term payables are reported in the current liabilities section of the balance sheet.

Some of the most commonly used categories of long-term liabilities include:

• Notes Payable – obligations to pay for equipment, land, buildings, etc.
• Deferred Income Tax – taxes you owe, but are legally ably to defer into future years.
• Lease Obligations – capital leases (put simply, a lease that resembles a purchase) are required to be reported as long-term liabilities.