A mortgage payable that had only 12 months left before due for repayment would be reclassified from a non-current liability to a current liability.

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Quizplus · Accepted Answer

A liability is classified as non-current if it is not expected to be settled within 12 months from the balance sheet date. If a mortgage payable has only 12 months left before due for repayment, it becomes due within one year and therefore, would be reclassified as a current liability.

A Mortgage Payable That Had Only 12 Months Left Before