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Cost Method
An accounting method used for investments, where the investment is recorded at cost and adjusted only for dividends received.
Consolidated Financial Statements
Financial reports that aggregate the financial position, results of operations, and cash flows of a parent company and its subsidiaries.
Elimination Entry
An accounting entry made in preparing consolidated financial statements to remove the effects of intercompany transactions.
Dividends
Payments made by a corporation to its shareholder members, usually derived from the company's profits.
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