Responses to DQ1Selling ReceivableDW and DQ2 Use of Depreciation CH Essay

Responses to DQ1Selling ReceivableDW and DQ2 Use of Depreciation CH - render ExampleThe mechanism of factoring is a good way for companies to improve their liquidity and cash position. DQ2 Your exposit that depreciation is a technique that is used to devalue an asset instead of being a order for asset valuation is completely correct. When I first read the message of the president of Keene Company I thought, Where did this guy go to business school. The premise the person stated is illogical. The person is mixing invoice concepts. Depreciation only has one purpose which is to devalue an asset through the passage of time. As you stated in your response book value and market values are varied. There are different modes of depreciation that can be used by an accountant. Four depreciation methods are declining balance, sum of form digits, straight line, and the modified accelerated cost recovery system (MACRS) (Fixedassetssoftware, 2011). The MACRS method is an accelerated depreci ation method that is used of assets that lose value fast such as computers. References Besley, S., Brigham, E. (2000). Essentials of Managerial Finance (12th ed.). Fort outlay The Dryden Press. Fixedassetssoftware.com (2011). Depreciation Methods. Paragon Systems.