Which of the following describes long term liabilities?

Long-term liabilities are financial obligations of a company that are not due for payment within the current operating cycle or one year, whichever is longer. This means that they are obligations that a company expects to pay off over a period extending beyond a year. Such liabilities typically include loans, bonds payable, and mortgages.

The distinguishing characteristic of long-term liabilities is their timeline for repayment, which sets them apart from current liabilities. Understanding this timeline is crucial for assessing a company's financial health and liquidity. Long-term liabilities can impact cash flow and require careful management, as they represent commitments that will be fulfilled in the future.

This concept is fundamental in accounting as it helps stakeholders evaluate a company’s long-term solvency and financial structure. Knowing that these obligations extend beyond the short term aids in planning and financial forecasting.