Long-term liabilities

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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.^{[1][better source needed]} The normal operation period is the amount of time it takes for a company to turn inventory into cash.^[2] 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,^{[3][better source needed]} 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.