Your liabilities are what you owe. They include the charges on your credit card every month, the rent owed on a lease agreement, the payoff amount on your mortgage, the balance due on your school loan, the taxes due, and so on. Liabilities are classified according to maturity as either short term (current) or long term. liability is due in the next 12 months. Categorize each of the following liabilities as a short-term liability or a long-term liability. Short-Term Long-Term Liability Liability This month's principal portion of a mortgage payment Apartment rent Home improvement loan Outstanding principal on a home mortgage Car insurance This month's Visa bill The amount not due in the current year As you gather data regarding your liabilities, it is important to remember that regardless of category, you should record all liabilities on the balance sheet at their current payoff amounts, which should payments interest