Which of the following best describes long-term debt?

Long-term debt refers to borrowing that an organization commits to repay over an extended period, typically exceeding one year. This form of financing is commonly used for significant investments, such as purchasing property, equipment, or funding large-scale projects.

The defining characteristic of long-term debt is its maturity timeline, which allows organizations to access substantial amounts of capital while spreading repayment over several years. With longer maturities, long-term debt can also offer stability in financial planning, as payments are predictable over time.

In contrast, the other descriptions do not accurately capture the essence of long-term debt. For example, debt instruments with maturities of one year or less would be classified as short-term debt, whereas short-term loans with high interest primarily signify immediate financing needs rather than a long-term financial strategy. Additionally, the term "loans provided only to corporations" is misleading, as individuals and various entities can also incur long-term debt.