Which of the following is an example of a long-term liability?
A) Accounts payable
B) Real estate mortgage
C) Accrued expenses
D) Current portion of real estate mortgage
E) Owners' equity

Question

Quizplus · Accepted Answer

A real estate mortgage is a long-term liability because the payment schedule extends beyond one year, typically up to thirty years. Accounts payable, accrued expenses, and the current portion of a real estate mortgage are all short-term liabilities. Owners' equity is not a liability at all, but rather represents the residual value of assets after liabilities are subtracted.

Which of the Following Is an Example of a Long-Term