The FIFO (First-In, First-Out) method is an inventory valuation approach where the oldest inventory items are recorded as sold first. This method is particularly significant in accounting for cryptocurrencies, as it affects how gains and losses are calculated during transactions. By using FIFO, businesses can accurately reflect the flow of assets and their financial performance, which is essential for compliance and reporting purposes.
congrats on reading the definition of FIFO method. now let's actually learn it.