Which of the theories of equity is consistent with the definition of equity that is found in Statement of Financial Accounting Concepts No. 6?
A) Proprietary theory.
B) Commander theory.
C) Entity theory.
D) Enterprise theory.

Question

Quizplus · Accepted Answer

Proprietary theory is consistent with the definition of equity found in Statement of Financial Accounting Concepts No. 6, as it views equity from the perspective of the owners or shareholders, aligning with the concept's emphasis on owners' interests in the business.

Which of the Theories of Equity Is Consistent with the Definition