Which of the following theories views non-controlling interest and the controlling shareholders as being two distinct shareholder groups?

Question

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The Entity Theory views non-controlling interest and the controlling shareholders as being two distinct shareholder groups because it identifies the company as a separate legal entity from its shareholders. This theory considers the company's financial statements as a reflection of the company's financial position and performance, not that of its shareholders. In contrast, the Ownership Theory considers the financial statements as a reflection of the shareholders' ownership interests, while the Proprietary Theory considers the company and the shareholders as a single entity. The Parent Theory is not a recognized accounting theory.

Which of the Following Theories Views Non-Controlling Interest and the Controlling