Case 15-7 Theoretical Implications of Various Theories of Equity The proprietary theory, the entity theory, and the funds theory are three approaches to accounting for equities.

Required:

Describe briefly each of these theories. State your reasons for emphasizing the application of one of these theories to each of the following: 1.Single proprietorship 2.Partnership 3.Financial institutions (banks) 4.Consolidated statements 5.Estate accounting