Question

explain entity theory and its origins and contrast it with proprietorship theory

Answer 1

Entity Theory It is an A which means its owner. Business existence to it. having separate provided capital who OY 1894 It was to accounting theory.com business entity is separate from is meined as from those Accounting equation of entity Theory Assets Liabilities + Shareholders' Equity where; Liabilities = All current long term debts & obligations Stockholders' Equity Asset available shareholders after all liabilities. o origin of Equity Theory It was originated in either 1864 justify a corporate tax. O , Now, Proprietorship Theory under under this, the entity individual enterpreneurs operate. the agent represetatic through which the © Accounting equation of proporcietorehis Theory Assets Liabilities Proprietor's Equity o difference b/w Equity & Proprietorship Theory Basis Equity Theory Proprietorship Theory Meaning Business entity is separate. Burines neturity is Accounting Assets = Liab. & equity Assets- siab - Equity (sharenolders) (phopritor) Party Shareholders Proprietor Distributed as dividend to the shareholders. Added to capital inc in proprietor's Thank is Equation ) Main Income wealth. You !! And Please upuoted.