1. If Urban Outfitter's 'Days Inventory' was 56.4 in fiscal 2021 and 51.9 in fiscal 2020, this implies that the company's inventory sold slower in fiscal 2021 than in fiscal 2020.

	True
	False

2. Target purchases sweatshirts for $25/each. Target believes that the sweatshirts will sell for $20/each. The sweatshirts should be valued at _____ on Target's Balance Sheet.

	$20/each
	$25/each

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

	Specific Identification
	FIFO
	LIFO
	Weighted Average

4. If costs are rising, the FIFO cost flow assumption generally results in the lowest tax burden.

	True
	False

5. Target purchases sweatshirts for $25/each. Target believes that the sweatshirts will sell for $40/each. The sweatshirts should be valued at _____ on Target's Balance Sheet.

	$25/each
	$40/each

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

	Weighted Average
	LIFO
	Specific Identification
	FIFO

7. Inventory in transit is never included in a company's inventory count.

	True
	False

8. A company can use LIFO to value its inventory even if the company's actual inventory flows are closer to FIFO.

	True
	False

9. A company will experience a LIFO liquidation if they use the LIFO cost flow assumption and purchase more units of inventory than they sell during the fiscal period.

	True
	False