However, it also signifies that subsequent performance of the same task will take less time due to the task being relatively easier to learn. A high learning curve indicates to a business that something might require intensive training, but that an employee will quickly become more proficient over time. The slope of the learning curve represents the https://turbo-tax.org/ rate in which learning translates into cost savings for a company.

The discount rate is the risk-free rate of return or the return that could be earned instead of pursuing the investment. If the project or investment can’t generate enough cash flows to beat the Treasury rate (or risk-free rate), it’s not worth pursuing. Discounted cash flow https://kelleysbookkeeping.com/ (DCF) valuation is a type of financial model that determines whether an investment is worthwhile based on future cash flows.

Repealing LIFO treatment of inventory would generate relatively little revenue for its economic costs. And LIFO repeal would disproportionately burden companies within industries that maintain more inventories https://accounting-services.net/ and further disincentivize investment that could prevent supply chain breakdowns. Though preserving LIFO will not fix supply chain issues on its own, eliminating it would make the problem worse.

Approval must be obtained not only from the state authority but also from the stockholders through a vote. While a few companies may use a temporary account, Dividends
Declared, rather than Retained Earnings, most companies debit
Retained Earnings directly. Ultimately, any dividends declared
cause a decrease to Retained Earnings. When state law requires a transfer,

If you choose to amortize the premium paid on a taxable bond, you must reduce the basis of the bond by the amortized part of the premium each year over the life of the bond. If you receive nontaxable stock rights and allow them to expire, they have no basis. You will make an adequate identification if you show that certificates representing shares of stock from a lot that you bought on a certain date or for a certain price were delivered to your broker or other agent.