Examlex
Select the correct statement from those provided.
Goodwill
An intangible asset on a company's balance sheet that arises when a company acquires another for a price higher than the fair value of its net tangible assets.
Retained Earnings
The portion of net income that is not distributed as dividends to shareholders, but rather reinvested in the business or kept as reserve.
Equity Method
A method of accounting employed by a business to log its investment in another firm when it possesses considerable sway but lacks complete authority.
Noncontrolling Interest
A minority stake in a company that is not sufficient to confer control, often reflected in the equity section of the parent company's balance sheet.
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