"Current liabilities" need to be paid back to creditors within one year (ex. Accounts Payable). "Long-term liabilities" must be paid back after 1 year (ex. Mortgage Loan). Both current and long-term liabilities appear in the balance sheet in the Liabilities Section.
Work Step by Step
Current Liability examples: Accounts Payable, Wages payable, Short-term loan. Long-term Liability examples: Mortgage loan, Long-term loan.