The proprietary theory, the entity theory, and the funds theory are three approaches to accounting for equities.   Required: a. Describe briefly each of these theories b. State your reasons for emphasizing the application of one of these theories to each of the following:       i.  Single proprietorship       ii. Partnership       iii.  Financial institutions (banks)       iv.  Consolidated statements       v.  Estate accounting

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 37MCQ
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The proprietary theory, the entity theory, and the funds theory are three approaches to accounting for equities.

 

Required:

a. Describe briefly each of these theories

b. State your reasons for emphasizing the application of one of these theories to each of the following:

      i.  Single proprietorship

      ii. Partnership

      iii.  Financial institutions (banks)

      iv.  Consolidated statements

      v.  Estate accounting

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