Salance Sheet Classification At the balance sheet date, a business owes a mortgage note payable of $414,000, the terms of which provide for monthly payments of $2,300. fow should the liablitity be dassified on the balance sheet? Current nability: 1 x ong-term liablity: 5 x Freethes: 7 Cuns My Woe A lability bolance can be separated into current and long-term; amounts due within one year or less are considered current and the remaining are iong-term