The Long-Term Liability Section of Alpha Corporation's Balance Sheet Includes

question 132

Essay

The long-term liability section of Alpha Corporation's Balance Sheet includes the following accounts Alpha Corporation is an established company and does not experience any financial difficulties or have any cash flow problems. Discuss at least two items that are questionable as long-term liabilities.

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Definitions:

Fees Earned

Income earned from providing services or performing work, recognized in the accounting period when the services are rendered.

Cash

Money in the form of bills or coins; the most liquid asset available.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for, represented as an asset on the balance sheet.

Unearned Revenues

Liabilities recognized when a company receives payment for goods or services yet to be delivered or performed.