What is the entity theory in accounting?

I am doing an assignment and one of the questions asks me to use the entity theory (orthodox) and then the entity theory (unorthodox), but I am unsure of what these are. Can anyone explain them to me?

Entity Theory is a view in which a business or other organization has a separate accountability of its own. It is based on the equation:

Assets = Liabilities + Stockholders' Equity

The entity theory considers liabilities as equities with different rights and legal standing in the business. Under the theory, assets, obligations, revenues, and expenses and other financial aspects of the business entity are accounted for separately from its owners.

In other words, the company has an identity distinct from its owners or managers. The firm is viewed as an economic and legal unit.

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