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Identify the factors that should be considered in determining whether a transaction is a business bad debt or a nonbusiness bad debt.
Property, Plant, and Equipment
The tangible long-lived assets used in the operations of a business, including land, buildings, machinery, and equipment.
Current Assets
Assets that a company expects to convert into cash or use up within one year or during its normal operating cycle, whichever is longer.
Income Statement
A financial statement that shows a company's revenues, expenses, and profits or losses over a specific period.
Revenues
Increases in assets from performing services or delivering products to customers.
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