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Piaget's theory
Contractual Agreement
A legally binding agreement between two or more parties, outlining their responsibilities and obligations.
Equity Method
An accounting technique used to record investments in associated companies, where the investment is initially recorded at cost and subsequently adjusted for the investor's share of the investee's net profit or loss.
Proportionately Adjusted Retained Earnings
Retained earnings adjusted in proportion to ownership interest in a company or investment.
Equity Method
A method of accounting for investments reflecting the investor's share of the earnings or losses of the investee in the investor's financial statements.
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