The letters LIFO represents "last-in-first-out". It is an inventory cost flow method whereby the last goods purchased are assumed to be the first goods sold by the company so that the ending inventory is priced as though the remaining items were the first goods purchased.
Liabilities are what the company owes its creditors. Liabilities are balance sheet accounts. Examples of liabilities are accounts payable, payroll taxes payable, rent payable, long-term debt, and income taxes payable.
LIFO (Last in, first out):
A method of inventory valuation in which the last items entered into inventory are considered the first items out
Line Of Credit:
An agreement between a bank and a customer whereby the bank agrees to lend the customer funds up to a previously agreed maximum amount. A line of credit is widely used by large organizations for the future commitments and purchases of inventory.
A Term used to describe the solvency of a business, and which has special reference to the degree of readiness in which assets can be converted into cash without loss.
See Long Term Liabilities
Long-term liabilities are liabilities of a company that are due in more than one year. An example of a long-term liability would be a bank debt maturing in five years.