ENTITY THEORY Definition

Bookmark and Share

ENTITY THEORY is where a legal entity is regarded as having a separate existence from the owners. The financial statements are prepared from the perspective of the entity, not its owners. See PROPRIETARY THEORY.

Learn new Accounting Terms

LIMITED LIABILITY is one that does not go beyond the owners investment in the business.

PERSISTENT EARNINGS is the level of earnings, from accounting to accounting period, that are continually recurring.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.