Discourse comprehension is understanding connected language across sentences or utterances. It includes tracking referents, linking events and using relevant background knowledge in comprehension to build a coherent interpretation. For example, resolving who a later pronoun refers to can require information from an earlier sentence. Correctly recognizing every word does not alone establish that these relationships were understood. [ref]
Children's reading comprehension ability: concurrent prediction by working memory, verbal ability, and component skills by Kate Cain and others. 2004, component skills and text comprehension
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