A commitment,such as a contract to pay a baseball player $5,000,000 a year for five years,should be listed as a long-term liability.

Name: A commitment,such as a contract to pay a baseball player $5,000,000 a year for five years,should be listed as a long-term liability.
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A commitment to pay a future salary is not recorded as a liability on the balance sheet until the service is performed. It is considered a future obligation, not a current liability.

A Commitment,such as a Contract to Pay a Baseball Player