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A probable loss from a lawsuit that can be reasonably estimated should not be reported
on the balance sheet as a current liability.
Income from operations includes interest revenue and interest expense because these
items are considered to be operating in nature.
When a corporation declares a dividend, a liability must be recorded.
Under the allowance method of accounting for bad debts, the company estimates the
amount of bad debts before those debts actually occur.
A company's relative mix of debt and equity financing is referred to as its __________
structure.
