Fixed liabilities are debts which are not likely to become mature for a long period of time, typically over a year. This includes bonds, mortgages or long-term loans. Also known as long-term liabilities, these debts are included in the business’s balance sheet.
For example…
When Tim’s accountant drew up the car mechanic’s balance sheet, there were several items in his fixed liabilities or long-term liabilities. These included the mortgage on the garage where Tim conducts business from, the period insurance premium he needs to pay and the periodic repayment on his business loan. All added up, Tim’s fixed liabilities at that point in time were hundred and twenty thousand dollars.
