Long-term debts are equal to........

Long term provisions & Long term borrowings

The correct answer is option 4- Long term provisions & Long term borrowings.

Long term debts include Long term borrowings & Long term provisions which mature after one year. Long term debts are used to calculate the debt-equity ratio where debt are long term debts.

* Loans which are repayable in more than twelve months/operating cycle are classified as long-term borrowings on the face of balance sheet.

* The amount of provision settled within 12 months from balance sheet date or within operating cycle period from date of its recognition is classified as short term provisions and shown under current liabilities on the face of balance sheet. Others are depicted as long-term provisions under non-current liabilities on the face of balance sheet.