Long-term liabilities

{{Short description|Liabilities that are due beyond a year or the normal operation period of the company}}

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Long-term liabilities, or non-current liabilities, are liabilities that are due beyond a year or the normal operation period of the company.{{Cite web|url=https://www.accountingcoach.com/blog/what-is-a-long-term-liability|title=What is a long-term liability?|website=AccountingCoach|language=en|access-date=2017-10-30}}{{Better source|date=October 2017}} The normal operation period is the amount of time it takes for a company to turn inventory into cash.{{Cite news|url=http://www.investopedia.com/terms/l/longtermliabilities.asp|title=Long-Term Liabilities|date=2003-11-23|work=Investopedia|access-date=2017-10-30|language=en-US}} On a classified balance sheet, liabilities are separated between current and long-term liabilities to help users assess the company's financial standing in short-term and long-term periods. Long-term liabilities give users more information about the long-term prosperity of the company,{{Cite web|url=https://accountingexplained.com/financial/lt-liabilities/|title=Long-term Liabilities|website=Accounting Explained|language=en|access-date=2017-10-30}}{{Better source|date=October 2017}} while current liabilities inform the user of debt that the company owes in the current period. On a balance sheet, accounts are listed in order of liquidity, so long-term liabilities come after current liabilities. In addition, the specific long-term liability accounts are listed on the balance sheet in order of liquidity. Therefore, an account due within eighteen months would be listed before an account due within twenty-four months.