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The principle of proportionality reflects the idea that
Investment
The allocation of resources, usually money, in the expectation of generating an income or profit.
Personal Expense
Expenses incurred by individuals for non-business-related activities, often not tax-deductible.
Goodwill Method
An accounting approach for handling goodwill during a business combination, where goodwill is not amortized but tested annually for impairment.
Capital Balances
The amounts shown in a company’s books representing the capital owned by partners or shareholders.
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