Financial Accounting Discussion Questions

https://www.youtube.com/watch?v=vnWtAchWP1c

(does not need to be in APA Format, does not have a min word count.)

Discuss:

1. Which method illustrated in the video depreciates the asset faster than the others? Why would you want a depreciation method that accelerates depreciation?

2. Comment on the video — was it helpful to your understanding of the basic methods of depreciating long-term assets?
(Please feel free to voice your thoughts, this is an open discussion!) Why or why not was it helpful?

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Question 2

There is also the possibility of equity (stock) financing. The key is that if we finance a business by selling stock (equity financing) we give up some or a lot of control over the business. But…. as you and others have mentioned, we don’t have to service debt (paying interest).

If you had a business that was growing but you needed a rather large infusion of cash to expand the business to meet demand (if you don’t do this the demand will likely be met by competitors or open the door to new competitors) which type of financing would you choose and why?

……………….Answer Preview……………..

Declining balance depreciation method.

Using a depreciation method that accelerates depreciation means that you can save on tax. The idea is to write off your capital…

APA

202 words