Long-term

Examples of Long-term in the following topics:

• Current Maturities of Long-Term Debt

  • The portion of long-term liabilities that must be paid in the coming 12-month period are classified as current liabilities.
  • Long-term liabilities are liabilities with a due date that extends over one year, such as a notes payable that matures in 2 years.
  • Examples of long-term liabilities are debentures, bonds, mortgage loans and other bank loans (it should be noted that not all bank loans are long term since not all are paid over a period greater than one year. ) Also long-term liabilities are a way for a company to show the existence of debt that can be paid in a time period longer than one year, a sign that the company is able to obtain long-term financing .
  • Bonds are a form of long-term debt because they typically mature several years after their original issue date.
  • Explain the reporting of the current portion of a long-term debt

• Reporting Long-Term Liabilities

  • Debts that become due more than one year into the future are reported as long-term liabilities on the balance sheet.
  • This is an example of a long-term liability.
  • "Notes Payable" and "Bonds Payable" are also examples of long-term liabilities, and they often introduce an interesting distinction between current liabilities and long-term liabilities presented on a classified balance sheet.
  • What this example presents is the distinction between current liabilities and long-term liabilities.
  • Despite a Note Payable, Bonds Payable, etc., starting out as a long-term liability, the portion of that debt that is due within a year has to be backed out of the long-term liability and reported as a current liability.

• Analyzing Long-Term Liabilities

  • Analyzing long-term liabilities combines debt ratio analysis, credit analysis and market analysis to assess a company's financial strength.
  • Analyzing long-term liabilities is done for assessing the likelihood the long-term liability's terms will be met by the borrower.
  • After analyzing long-term liabilities, an analyst should have a reasonable basis for a determining a company's financial strength.
  • $\frac { Long-Term\quad Debt\quad +\quad Value\quad of\quad Leases }{ Average\quad Shareholders\quad Equity }$
  • When gathering information, an analyst should always read the footnotes contained in financial statements to determine if there are any disclosures related to long-term liabilities or other factors that may impact the company's ability to pay it's long-term obligations.

• The Term Structure

  • In the case of bonds, time to maturity, or terms, vary from short-term - usually less than a year - to long-term - 10, 20, 30, 50 years, etc.
  • The liquidity premiumtheory asserts that long-term interest rates not only reflect investors' assumptions about future interest rates but also include a premium for holding long-term bonds (investors prefer short-term bonds to long-term bonds).
  • Because of the term premium, long-term bond yields tend to be higher than short-term yields, and the yield curve slopes upward.
  • Prospective investors decide in advance whether they need short-term or long-term instruments.
  • This explains the stylized fact that short-term yields are usually lower than long-term yields.

• Classifying Liabilities

  • The two main categories of these are current liabilities and long-term liabilities.
  • Other long-term obligations, such as bonds, can be classified as current because they are callable by the creditor.
  • Long-term liabilities are reasonably expected not to be liquidated or paid off within the span of a single year.
  • These usually include issued long-term bonds, notes payables, long-term leases, pension obligations, and long-term product warranties.
  • Contingent liabilities can be current or long-term.

• The Yield Curve

  • A flat yield curve is observed when all maturities have similar yields, whereas a humped curve results when short-term and long-term yields are equal and medium-term yields are higher than those of the short-term and long-term.
  • An inverted yield curve occurs when long-term yields fall below short-term yields.
  • The liquidity premium theory asserts that long-term interest rates not only reflect investors' assumptions about future interest rates, but also include a premium for holding long-term bonds (investors prefer short term bonds to long term bonds), called the term premium or the liquidity premium.
  • Prospective investors decide in advance whether they need short-term or long-term instruments.
  • This explains the stylized fact that short-term yields are usually lower than long-term yields.

• Capacity Planning

  • " in both long-term and short-term situations.
  • Determining the organization's capacity to produce goods and services involves both long-term and short-term decisions.
  • Long-term capacity decisions involve facilities and major equipment investments .
  • Capacity decisions are also required in short-term situations.

• Impacts of Exercise on Muscles

  • Exercise involves a series of sustained muscle contractions of either long or short duration depending on the nature of the physical activity.
  • Muscle hypertrophy, or the increase in muscle mass due to exercise , particularly weight training, is a noticeable long-term effect of exercise.
  • Increases in muscle mass are not the only long-term effect of exercise.
  • Muscle specified for high intensity anaerobic exercise will synthesise more glycolytic enzymes, whereas muscle for long endurance aerobic exercise will develop more capillaries and mitochondria.
  • Differentiate between the short-term and long-term effects of exercise on muscles

• Introduction to Memory Storage

  • The way long-term memories are stored is similar to a digital compression.
  • Items stored in short-term memory move to long-term memory through rehearsal, processing, and use.
  • The capacity of long-term memory storage is much greater than that of short-term memory, and perhaps unlimited.
  • Note that all models use the terminology of short-term and long-term memory to explain memory storage.
  • Two types of memory storage, short-term store and long-term store, are utilized in the SAM model.

• Short-Term and Working Memory

  • It is separate from our long-term memory, where lots of information is stored for us to recall at a later time.
  • It also links the working memory to the long-term memory, controls the storage of long-term memory, and manages memory retrieval from storage.
  • The process of transferring information from short-term to long-term memory involves encoding and consolidation of information.
  • This is a function of time; that is, the longer the memory stays in the short-term memory the more likely it is to be placed in the long-term memory.
  • In this process, the meaningfulness or emotional content of an item may play a greater role in its retention in the long-term memory.