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Approaches to accounting for equities

The proprietary theory, the entity theory, and the funds theory are three approaches to accounting for equities.

Required:

1. Describe briefly each of these theories.
2. State your reasons for emphasizing the application of one of these theories to each of the following.

a. Single proprietorship

b. Partnership

c. Financial institutions (banks)

d. Consolidated statements

e. Estate accounting

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Other Management: Approaches to accounting for equities

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