FIFO Definition

Bookmark and Share

FIFO (first-in, first-out) is an inventory cost flow whereby the first goods purchased are assumed to be the first goods sold so that the ending inventory consists of the most recently purchased goods.

Learn new Accounting Terms

P/E RATIO (PRICE/EARNINGS RATIO) is a stock analysis statistic in which the current price of a stock (todays last sale price) is divided by the reported actual (or sometimes projected, which would be forecast) earnings per share of the issuing firm; it is also called the "multiple".

DISCOUNTED EARNINGS determines the value of a business based upon the present value of projected future earnings, discounted by the required rate of return (capitalization rate). Usually, the question is how well earnings are projected.

Suggest a Term

Enter Search Term

Enter a term, then click the entry you would like to view.