A mortgage payable is classified as what type of liability?

A mortgage payable is classified as a long-term liability because it typically represents a debt that a company or individual is obligated to repay over a period longer than one year. Mortgages are often structured with terms ranging from 15 to 30 years, where the borrower repays the principal and interest in regular installments.

This classification is important in accounting and finance because it impacts a company's balance sheet. Long-term liabilities are shown separately from current liabilities, which are due within a year, allowing stakeholders to assess the long-term financial health and obligations of the entity. In contrast, current liabilities are more immediate financial obligations.

The choice of contingent liability refers to potential liabilities that may occur depending on the outcome of a future event, which is not applicable to a fixed mortgage obligation. Fixed liability is not a standard financial term used to describe liabilities on balance sheets. Understanding these classifications helps in the accurate reporting and analysis of a company's financial position.