The Entity View is a fundamental concept in accounting that emphasizes the importance of the business or organization as a separate entity from its owners. This view is based on the accounting equation where the sum of the assets is equal to the claims on these assets by owners and others.
The proprietary view in accounting emphasizes the rights and interests of shareholders rather than viewing the enterprise as a separate entity.
Residual Equity Theory emphasizes the rights and interests of ordinary shareholders, viewing them as the real owners of a business. It reflects in earnings per share, aiding shareholder investment decisions. This theory positions itself between the proprietary view and the entity view of a company.
