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

A fixed liability refers to a long-term obligation that a company is required to pay back over an extended period, typically more than one year. In this context, a mortgage on a company's building is a perfect example of a fixed liability because it represents a long-term debt that is secured by the property itself. The mortgage requires regular payments over a specified period, often spanning several years, thus classifying it as a fixed liability.

Other options in the question serve different financial functions. Accounts payable are typically short-term obligations that need to be settled in the near term, often within a year. Short-term loans, as the name suggests, are also classified as current liabilities because they are expected to be paid off within a short time frame, typically less than a year. Inventory, while an asset, does not represent any form of liability and thus does not fit the definition of fixed liability.

Understanding the distinctions between fixed liabilities and other financial instruments is crucial for effective financial management and accurate accounting practices within a business.