Land: Considered to have an indefinite life, so does not depreciate. On a corporate financial statement, is usually recorded at original cost and includes direct purchase expenses.

Last Date in Fiscal Year: The last day in your current fiscal year.

Last In First Out (LIFO): The stock acquired earliest is assumed to be still on hand; the stock acquired latest is assumed to have been used immediately.

Leasehold Improvements: Includes the cost of renovations and alterations to leased premises.

Liability/Debt: A financial obligation or debt of a business arising from a past transaction that is to be paid in the future.

Limited Partnership: A partnership in which one or more of the partners have had their liability for the debts of the partnership limited to their contributed capital.

Liquidity: Includes working capital, quick ratio, collection period, inventory turnover, bank support. Measures the enterprise’s capacity to meet current obligation using its most liquid assets and short-term financing opportunities.

Living Costs: Personal drawings from the business not including fees or salaries paid to shareholders or management that are included in expenses.

Long-Term Debt/Long Term Liabilities: A debt with a maturity date beyond one year from the date of the balance sheet or beyond the normal operating cycle (where the cycle is longer than one year). Long-term debt excludes that portion of the debt principal due within one year.