Definition. The term long-term notes payable refers to an agreement a company enters into with another party, which includes a formal written promise to pay pre-determined amounts on specific dates. To be categorized as a long-term note payable, the maturity of the note must be longer than one year or operating cycle.

What are long term liabilities examples?

Examples of long-term liabilities are bonds payable, long-term loans, capital leases, pension liabilities, post-retirement healthcare liabilities, deferred compensation, deferred revenues, deferred income taxes, and derivative liabilities.

What is the difference between short term and long-term notes payable?

Short-term notes payable are due within a year, whereas long-term notes payable are due in over one year. They are therefore categorized differently on the company balance sheet. Because they are money owed by the company, both short and long-term notes payable are considered liabilities.