The entity view of accounting was formulated in response to the shortcomings of the proprietary view concerning the separate legal status of a company.

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The entity view of accounting was developed in response to the limitations of the proprietary view, which did not recognize the separate legal status of a company. The entity view considers a company as an independent entity with rights and responsibilities distinct from those of its owners, and therefore requires accounting to be done from the company's perspective, rather than that of its owners.

The Entity View of Accounting Was Formulated in Response to the Shortcomings