In this paper I have designated Long-term Liabilities as for the topic which include specific issues on how corporations operates and how they raise money by issuing bonds and current financial crisis in Italy and circumstances of us and European debt. A corporation, per its by laws, usually requires approval by a company’s board of directors and the stockholders before bonds or notes can be issued. The same holds true for other types of long-term debt planning.

Long-term liabilities are existing obligations or debts due after one year or operating cycle, whichever is longer. They appear on the balance sheet after total current liabilities and before owners' equity. There are many examples of long-term liabilities such as notes payable, mortgage payable, obligations under long-term capital leases, bonds payable, pension and other post-employment benefit obligations, and deferred income taxes. The values of many long-term liabilities represent the present value of the anticipated future cash outflows. Present value represents the amount that should be invested now, given a specific interest rate, to accumulate to a future amount.

This paper will bring the issue of the maturity configuration of firms debt and provides some practical evidence on long-term liability and on the potentially difficult consequences when it is in short supply is somewhat at odds with recent speculative contributions that highlight the fact that the use of short-term debt may be associated with higher-quality firms and may have better incentive properties. In general, the prospect of premature insolvency may act as an authority device that improves company’s performance.
Issuing bonds is one way firms raise their capital. How companies benefit from issuing bonds and to simply demonstrate how bonds works we need to know how bonds work. Bond is a written promise to pay back a specific amount of money at a certain date or dates in the future. There are many different types of bonds which includes secured and unsecured bonds, term, serial and callable bonds, and convertible, commodity and deep discounts bonds, registered and bearer bonds and income and revenue bonds. Companies usually make bond interest payments semiannually, although the interest rate is generally expressed as an annual rate. In the short-term, bondholders receive interest payments at fixed rates on specified dates. For example, if a company wants to issue $5 Million in bonds and hire's an investment bank to sell them. The investment bank in the hiring phase agrees with the company to take a percentage of the funds as a commission. Let’s say 10 percent, which means that the company will be issuing 5000 bonds at $5000.00 each. However company will only get $4500.00 for each bond and so therefore the investment bank gets to keep $500.00 per bond. At the end of the sale the Investment Bank has $500,000.00 as their commission and the Company issuing the bonds gets $45,000,000.00. Corporations benefit by issuing bonds because the interest rate they must pay investors are normally lesser than rates for most other types of borrowing and because interest paid on bonds is considered to be a tax-deductible business disbursement. However, corporations must create interest payments even when they are not showing profits. If investors doubt a company's ability to meet its interest obligations, they either will decline to buy its bonds or will claim a higher rate of interest to compensate them for their bigger risk.

Long Term Notes Payable is valued at the present value of future interest and principal cash flows, with a discount or premium amortized over the life of the note. Some of the long term notes payables are Notes issued at face value, Zero Interest Bearing Notes, Interest Bearing Notes not issued at face value. Another common is Mortgage Notes Payable that is a promissory note secured by a document called a mortgage that pledges title to