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Simple English definitions for legal terms

FIFO

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A quick definition of FIFO:

Term: FIFO

Definition: FIFO stands for "First in, first out." It's a way of keeping track of inventory, which means the things a business has to sell. With FIFO, the first things a business buys are the first things it sells. This method usually makes the inventory look more valuable and can make the business look like it's making more money. But it can also mean the business has to pay more taxes. However, it can help new businesses get loans more easily. LIFO is another way of keeping track of inventory that works differently from FIFO.

A more thorough explanation:

Definition: FIFO stands for First in, first out accounting. It is a method used to calculate the value of inventory. In this method, the first items purchased are assumed to be the first ones sold or disposed of. This means that the oldest inventory is sold first, and the newest inventory is sold last.

FIFO accounting usually results in a higher recorded value of inventory and a higher net income than if LIFO (Last in, first out) were used. This can lead to higher income taxes, but it can also help new businesses get loans on better terms.

For example, let's say a store buys 100 units of a product at $5 each on January 1st and then buys 100 more units of the same product at $6 each on February 1st. If the store sells 150 units of the product, FIFO accounting assumes that the first 100 units sold were the ones purchased on January 1st, and the remaining 50 units sold were the ones purchased on February 1st. This means that the cost of goods sold would be calculated as 100 x $5 + 50 x $6 = $550.

This example illustrates how FIFO accounting assumes that the oldest inventory is sold first, which can result in a higher recorded value of inventory and a higher net income.

fieri facias | FIFO accounting

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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