Chapter 15, Problem 11Q

To determine

Financial statements: Financial statements refer to those statements, which are prepared by the company at the end of the accounting period in the particular formats which are prescribed in accounting to show its financial position.

Long-term liabilities: Long-term liabilities are the liabilities of the company which can be converted into cash after the duration of twelve months. Long-term liabilities define the long-term perspective or goals of the company.

To explain: The required terms for the presentation of long-term liabilities.