williams_ki_dis8 - Kimberly Williams Saint Leo University...

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Kimberly WilliamsSaint Leo UniversityACCT540Discussion PromptDiscuss the theories of equity. Do you prefer one over the other? Why?
Proprietary TheoryThis theory is based on the idea that the owner is the center of attention or thataccounting practices are done with the owner's interest in mind.The view of this theory is thatthe net assets of the firm belong to the owners.Under this theory, equity is equal to the net worthof the owners and is shown as assets – liabilities = equity.Entity TheoryThis theory is based on the idea that the business as a whole is the center of attention and

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Term
Summer
Professor
NoProfessor
Tags
Balance Sheet, Generally Accepted Accounting Principles, entity theory

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