Types of Long-Term Liabilities

Se1. Match the liabilities that follow with the statement to which it applies.

1.    Bonds payable                                   a. May result in a capital lease

2.    Long-term notes payable                 b. Differences in income taxes on accounting income

3.    Mortgage payable                                  and taxable income

4.    Long-term lease                                c. The most popular form of long-term financing

5.    Pension liabilities                               d. Often used to purchase land and buildings

6.    Other post-retirement benefits e. Often used interchangeably with bonds payable

7.    Deferred income taxes                     f. Future health care costs are a major component

g. May include 401(k), ESOPs, or profit-sharing