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A normative statement concerns
Equity Method
An accounting technique used to assess the profits earned by investments in other companies, reflecting the profit in proportion to shares held.
Comprehensive Income
The total change in equity for a reporting period other than transactions from owners, encompassing all realized and unrealized gains and losses.
Cost Method
An accounting method used for investments, where the investment is recorded at cost and adjustments are made only for dividends received and permanent declines in value.
Retained Earnings
The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders, often used for reinvestment in the business or to pay down debt.
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