What is an example of a long-term liability?

The correct choice, which is Mortgage Payable, represents a long-term liability because it is a debt that is typically due over a period extending beyond one year. Long-term liabilities, like a mortgage, are obligations that a company expects to pay off over a longer timeframe, often associated with financing the purchase of property or large assets.

This type of liability is recorded on the balance sheet and reflects the amount owed to lenders or creditors, with repayments structured over multiple periods. Mortgages commonly involve monthly payments that include both interest and principal, which can span many years, usually 15 to 30 years.

In contrast to this, Accounts Payable and Short-term Loans are classified as current liabilities because they are expected to be settled within one year. Accrued Expenses also fall into the current liability category, as they represent obligations for expenses that have been incurred but not yet paid within a short period. Thus, Mortgage Payable stands out as the correct example of a long-term liability due to its extended repayment period characteristic.