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Topic: Business
Number of pages / Number of words: 2 / 322
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Presented in Partial Fulfillment

Of the Requirements for the Class

ACG 450 ? Advanced Topics in Accounting

By

Jason T. Rose

AIU Online

24 November 2005

1. Determine the income under each of the following equity theories:

o Proprietary theory

Net Income = Operating margin ? Interest expense

= $300,000 - $80,000

= $220,000

o Entity theory (orthodox view)

Net Income = Revenue ? Operating expense

= $1,000,000 - $700,000

= $300,000

Net Income in this theory also equals the operating margin...


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Presented in Partial Fulfillment

Of the Requirements for the Class

ACG 450 ? Advanced Topics in Accounting

By

Jason T. Rose

AIU Online

24 November 2005

1. Determine the income under each of the following equity theories:

o Proprietary theory

Net Income = Operating margin ? Interest expense

= $300,000 - $80,000

= $220,000

o Entity theory (orthodox view)

Net Income = Revenue ? Operating expense

= $1,000,000 - $700,000

= $300,000

Net Income in this theory also equals the operating margin...


Essay fragment

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