Long-term debt is often called:
A) secured debt.
B) subordinated debt.
C) funded debt.
D) capital debt.

Question

Quizplus · Accepted Answer

Long-term debt is referred to as funded debt because it is obtained through the issuance of bonds, which are essentially long-term loans that must be repaid over a period of several years. Secured debt refers to debt that is backed by collateral, such as a mortgage or car loan. Subordinated debt is a type of debt that is ranked lower in priority for repayment than other types of debt, such as senior debt. Capital debt is not a commonly used term in finance.

Long-Term Debt Is Often Called