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This quiz consists of 5 multiple choice and 5 short answer questions through Accounting and Valuation.

Multiple Choice Questions

1. Inventory was carried at _______ value to minimize any loss from accounting adjustments in addition to other satirical accounting action.
(a) $20.
(b) $1.
(c) $99.
(d) $10.

2. What is NOT one of the companies listed as having the management requirements that Buffett and Munger want to see?
(a) Wal-Mart.
(b) Champion.
(c) USAir.
(d) Salomon.

3. ________ cannot outperform business indefinitely because earnings on stock investments were reduced by the amount of transaction and investment management costs.
(a) Treasury bills.
(b) Bonds.
(c) Stocks.
(d) Holdings.

4. Whose approach did other companies try to use in order to emulate Berkshire?
(a) Munder.
(b) Mulder.
(c) Graham.
(d) Smith.

5. Buffett dismissed risk in his choices with his notion that falling __________ prices present an opportunity to buy.
(a) Bond.
(b) Stock.
(c) Checking.
(d) Mortgage.

Short Answer Questions

1. Buffett and Munger continue to offer _______ for value trade in the acquisition process, as it seems fair to all parties.

2. What did GAAP stand for, according to the text in the book?

3. Preferred stock is considered with _________ that Munger and Buffett like, admire, and trust.

4. _________ percentage ownership was acquired when the market presented opportunities, according to the book.

5. Buffett admitted that issuing ________ in mergers cost shareholders money, according to the book.

(see the answer key)

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