Principal Amount

Long-Term Debt or Long-Term Liability
Long-term debt, also known as long-term liability, refers to loans and financial obligations that are due in more than a year. These obligations often include bonds and notes payable, with periodic interest payments and the principal due upon maturity.
Principal Amount
The principal amount is the face value of a financial obligation such as a bond or a loan that is required to be repaid at its maturity date, distinct from the interest accrued.
Terminal Value (TV)
Terminal value (TV) is the estimated value of an investment at the end of a specified period, calculated using a given rate of interest. It represents the future worth of an initial investment assuming a specific growth rate.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.