Which of the following is true regarding long-term debt?

Long-term debt is characterized by its maturity period, which typically exceeds one year. This definition is crucial for distinguishing long-term obligations from short-term debt, which is defined as debt that is due to be repaid within one year. Long-term debt often encompasses various forms of financing, including bonds, loans, and other long-term instruments used to fund capital projects or investments over a longer time horizon. Understanding this distinction is essential for a Certified Municipal Finance Officer, as it influences budgeting, financial planning, and investment strategies within a municipality.

While some long-term debts may indeed involve variable interest rates, this does not define all long-term debt, as fixed interest rate options are also common. Furthermore, long-term debts can be secured or unsecured depending on whether the debt is backed by collateral. Requiring repayment within six months would classify it as short-term rather than long-term debt. Thus, the defining feature of long-term debt is its maturity period, making the statement regarding its maturity exceeding one year the accurate choice.