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What Are the 90-10 Rule and the 80-10-10 Rule and Which

question 35

Essay

What are the 90-10 rule and the 80-10-10 rule and which one would you choose to use and why?


Definitions:

Accounting Methods

The rules and procedures that a company follows to prepare its financial statements, including various methods for recognizing revenues, expenses, assets, and liabilities.

Denominator

The bottom part of a fraction that shows into how many parts the whole is divided.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Bonus Issue

An issue of shares to existing shareholders in proportion to their current shareholdings at no cost to the shareholders.

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