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Simple English definitions for legal terms

LIFO accounting

Read a random definition: Ker–Frisbie rule

A quick definition of LIFO accounting:

Term: LIFO accounting

Definition: LIFO accounting is a way to figure out how much a company's inventory is worth. It assumes that the last items bought are the first ones sold. This method usually makes the inventory look like it's worth less, which can help the company pay less in taxes. It's the opposite of FIFO accounting, which assumes the first items bought are the first ones sold.

A more thorough explanation:

LIFO accounting

Last in, first out accounting. It is a way of calculating the value of inventory, where the items that were most recently purchased are assumed to be the first ones sold. This method typically lowers the recorded value of inventory and helps businesses avoid paying higher income taxes due to inflation. It is the opposite of FIFO accounting.

Let's say a store has 10 units of a product in stock. They purchased 5 units for $10 each a month ago and 5 units for $12 each yesterday. If they sell 7 units today, according to LIFO accounting, they would assume that the 5 units purchased yesterday and 2 units purchased a month ago were sold. Therefore, the cost of goods sold would be $5 x $12 + $2 x $10 = $64.

Another example could be a car dealership that has 20 cars in stock. They purchased 10 cars for $20,000 each a month ago and 10 cars for $22,000 each yesterday. If they sell 15 cars today, according to LIFO accounting, they would assume that the 10 cars purchased yesterday and 5 cars purchased a month ago were sold. Therefore, the cost of goods sold would be $10 x $22,000 + $5 x $20,000 = $230,000.

These examples illustrate how LIFO accounting assumes that the most recently purchased items are the first ones sold, which can result in a lower recorded value of inventory and lower income taxes.

LIFO | like-kind property

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16:45
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NosyBeagle
16:47
lol same but the second in command gives me tasks
NosyBeagle
16:47
none today tho
NosyBeagle
16:47
it's almost 4pm and i play nyt sudoku at 4pm and i am thrilled. this is my life now
globalcitizen
17:22
Waitlists serve as little gestures to aa era on the way out
globalcitizen
17:22
That’s nice
ParallelAgreeableOrangutan
17:34
To what?
Anyone get uva feeler/auto email about waitlist
ParallelAgreeableOrangutan
18:28
I got the email. Based on the language in the email, I'd be surprised if many feelers were going out
I mena, the same is true for all of them lmfao WL =R
ParallelAgreeableOrangutan
18:51
That's demonstrably not true. I've gotten feelers and others in this chat have as well. Not sure why you're asking questions when you clearly aren't interested in the answers
hello
19:22
hey yall
ParallelAgreeableOrangutan
19:25
Hi llama!!
21:15
@ParallelAgreeableOrangutan: How are you!
ParallelAgreeableOrangutan
22:02
tbh kinda losing my mind, I'm visiting my parents in my childhood home and whenever I do this I remember why I never do this aahhaha
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22:02
My dog likes it here tho
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How are youuuuu?
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@ParallelAgreeableOrangutan: Deep/tough. Feels. Im well working on a project so im happy :)
22:28
should i hit the dmt pen in the sauna and meet god
ParallelAgreeableOrangutan
22:31
Ooh what kind of project? Work, passion, neither, both?
ParallelAgreeableOrangutan
22:31
@NemoPropheta: do it do it
22:37
alright day before my lsat ill hit a blinker in the sauna and become one with the test
22:47
@ParallelAgreeableOrangutan: law school data so just passion.
22:47
@NemoPropheta: noo they drug test before the LSAT! U will get flagged!
ParallelAgreeableOrangutan
23:19
I'm intrigued llama
ParallelAgreeableOrangutan
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Holdddddup all that number crunching on your lsd profile is your work? Damn
ParallelAgreeableOrangutan
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I don't visit y'all's profiles enough, clearly
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@NemoPropheta: Ahh yeah, the Sauna. That's some good Nordic shit. Beats the hot tub hands down. Plus everyone is naked.
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@ParallelAgreeableOrangutan: got that weaponized autism in gear, we out here.
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