Long-term loans. E.g. Mortgage.

• A. Net Current Assets/Working Capital
• B. Capital (balance sheets)
• C. Long-Term Liabilities
• D. Current Liabilities

Answer: (C)

Understanding how debts are categorized by repayment time is key. A mortgage is a long-term loan because its repayment stretches over many years, so on the balance sheet it is shown as a long-term liability. This distinction helps reflect the company’s financing structure and its solvency in the longer term. If any part of the loan were due within the next year, that portion would appear under current liabilities, but the typical mortgage sits in long-term liabilities. Net current assets/working capital relates to short-term liquidity, not the type of debt. The label capital on a balance sheet covers broader sources of funding (equity and long-term borrowings) rather than identifying the loan itself.