Oncogene Science, Inc., is a biopharmaceutical company involved in developing innovative products for the diagnosis and treatment of cancer, cardiovascular disease, and a number of other important human illnesses. Its proprietary core technologies include oncogenes, tumor suppressor genes, and gene transcription. Its 1994 financial statements include the following current liabilities and no other liabilities:

a. Describe each of the liabilities shown on Oncogene's balance sheet. Describe the business purpose of each liability.

b. Why did Oncogene report unearned revenues? Why only the current portion?

c. How would a lender or an investor evaluate Oncogene's liability disclosures? Are there any missing categories of information for which additional disclosures are preferred?

d. Why might these liabilities, which are relatively immaterial in amount, reflect high risks for an investor or lender?