Which of the following is an example of a current liability?

Accounts payable is correctly identified as a current liability because it represents amounts owed to suppliers or creditors for goods and services that have been received but not yet paid for. These payments are typically due within a short period, usually within one year, which aligns with the definition of current liabilities. Current liabilities are obligations that the company expects to settle in the near term through its current assets, which include cash or cash equivalents, inventories, and receivables.

In contrast, long-term debt and mortgage payable are examples of long-term liabilities, as they involve obligations that are not due for a period longer than one year. Retained earnings represent accumulated profits that have been retained in the company rather than distributed as dividends to shareholders; thus, they are part of shareholders' equity and not a liability. Understanding the classification of liabilities is essential for analyzing a company's financial position and making informed decisions.