What are Long-term Liabilities?
A liability is something which a firm owes to a person or another firm. It may be in the form of creditors - people or firms who have sold you goods which you have not yet paid for, or it may be money borrowed from a financial institution - loans.
As the title of the variable suggests, we are looking in this case for liabilities that are owed in the long-term. This is generally taken in accounting terms to be more than a year. This therefore tends to mean that most trade creditors (except in exceptional circumstances) are not long-term but current liabilities. Long-term liabilities thus tend to be bank loans.