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Bad debts expense is ordinarily tested as part of the testing of the valuation of:
Related Liability
An obligation that is directly associated with the operating activities or financial situation of a business.
Operating Lease
A lease agreement allowing one to use an asset without ownership, typically with shorter terms than a finance lease.
Capital Lease
A lease agreement in which the lessee essentially acquires all the benefits and risks of ownership of the asset, even though legal title may not be transferred.
Lease Inception
The beginning date of a lease agreement when all terms and conditions are established and the lease becomes effective.
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