What type of liability includes a mortgage that is due to be paid off within 15 years?

The correct answer is that a mortgage due to be paid off within 15 years is classified as a fixed liability. Fixed liabilities refer to long-term debts or obligations that are not expected to be settled within a single year. Mortgages typically fall into this category as they are contractual obligations to pay off a loan over an extended period, usually lasting several years.

A mortgage is not classified as a current liability, which represents obligations that are due within one year. Although it has a specified term of 15 years, it is structured as a long-term liability because the full payment does not need to be made immediately.

Short-term liabilities are also obligations that must be settled within one year, which does not apply to a 15-year mortgage. Contingent liabilities refer to potential obligations that may arise based on the outcome of future events, which does not accurately describe the liability associated with a mortgage structured for a set repayment period. Therefore, understanding the difference in liability classifications is crucial, particularly in financial contexts such as managing assets and obligations in funeral service operations or businesses.