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When two tectonic plates collide:
Equity Method
An accounting technique used by a parent company to record its investments in subsidiaries or affiliates based on the equity stake's pro-rata share of net assets rather than the historical cost of the investment.
Stockholders' Equity
The remaining value of a company's assets after liabilities are subtracted, indicating the stake held by shareholders.
Liabilities
Financial obligations or debts that an entity owes to external parties, which must be settled through the transfer of assets, provision of services, or other economic benefits.
Assets
Resources owned or controlled by a business, expected to produce economic value or future benefits.
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