Debts that are due beyond one year are referred to as?

Debts that are due beyond one year are classified as long-term liabilities. This term encompasses financial obligations that a company is required to pay after a year from the date of the balance sheet. Understanding this classification is crucial, as it reflects a company's financial health and its long-term financial commitments. Long-term liabilities include loans, bonds payable, and any other financial debt that is not due within the next year.

In contrast, current liabilities are obligations that are due within one year. Assets refer to resources owned by the company, while equity represents the ownership interest in the company after liabilities have been deducted from assets. Each of these terms denotes different aspects of a company’s financial position, making it essential to correctly categorize debts to accurately assess financial stability and performance.