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Question 1 (1 point)

LIFO is not allowed under IFRS.

Question 1 options:

	True
	False

Question 2 (1 point)

Both cost of goods sold and ending inventory are valued at ACTUAL costs under the _____ cost flow assumption.

Question 2 options:

	FIFO
	LIFO
	Weighted Average
	Specific Identification

Question 3 (1 point)

If a company uses periodic inventory tracking, they can avoid a LIFO liquidation by purchasing additional inventory at the end of the period.

Question 3 options:

	True
	False

Question 4 (1 point)

Both cost of goods sold and ending inventory are valued at AVERAGE cost under the _____ cost flow assumption.

Question 4 options:

	Weighted Average
	LIFO
	Specific Identification
	FIFO

Question 5 (1 point)

Macy's purchases a shipment of Levi's 501 jeans for $55/pair. Macy's believes that the jeans will sell for $40/pair. The jeans should be valued at _____ on Macy's Balance Sheet.

Question 5 options:

	$40/pair
	$55/pair

Question 6 (1 point)

Macy's purchases a shipment of Levi's 501 jeans for $55/pair. Macy's believes that the jeans will sell for $80/pair. The jeans should be valued at _____ on Macy's Balance Sheet.

Question 6 options:

	$55/pair
	$80/pair

Question 7 (1 point)

If Nike's 'Days Inventory' was 6.4 in 2020 and 6.8 in 2019, this implies that the company's inventory sold faster in 2020 than in 2019.

Question 7 options:

	True
	False

Question 8 (1 point)

Inventory in transit is sometimes included in a company's inventory count, even though the inventory is not on the company's premises.

Question 8 options:

	True
	False

Question 9 (1 point)

If Exxon uses LIFO for tax purposes, they must also use LIFO for their financial statements.

Question 9 options:

	True
	False

Question 10 (1 point)

Cost of goods sold is valued at NEWER costs and ending inventory is valued at OLDER costs under the _____ cost flow assumption.

Question 10 options:

	Specific Identification
	FIFO
	Weighted Average
	LIFO

Question 11 (1 point)

FIFO generally produces a more useful Income Statement and a more useful Balance Sheet.

Question 11 options:

	True
	False

Question 12 (1 point)

Whole Foods cannot use LIFO to value its inventory because the company's actual inventory flows are more similar to FIFO.

Question 12 options:

	True
	False

Question 13 (1 point)

Cost of goods sold is valued at OLDER costs and ending inventory is valued at NEWER costs under the _____ cost flow assumption.

Question 13 options:

	Specific Identification
	LIFO
	FIFO
	Weighted Average

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