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This quiz consists of 5 multiple choice and 5 short answer questions through Accounting Policy and Tax Matters.

Multiple Choice Questions

1. Buffett avoids _________ share value to existing shareholders by true value for value merger, using stock as inflated currency.
(a) Increasing.
(b) Dispersing.
(c) Diluting.
(d) Stabilizing.

2. A stock _______ might attractive investors unlike their current investor group which might downgrade the quality of the shares.
(a) Sale.
(b) Split.
(c) Option.
(d) Selloff.

3. ________ took fictional accounting actions that showed absurd accounting manipulations to let it undersell all competition to dominate the industry.
(a) Pepsi.
(b) US Steel.
(c) GEICO.
(d) Coca-Cola.

4. What was the value of the shares of the company that Buffett and his partner purchased thirty years after its purchase?
(a) $10,000 per share.
(b) $40,000 per share.
(c) $25,000 per share.
(d) $15,000 per share.

5. Accounting for the purchase of a business required allocating the ________ first to the fair value of net assets.
(a) Purchase price.
(b) Dividends.
(c) Projected price.
(d) Stock market.

Short Answer Questions

1. The common stock par value was reduced to _________, according to the book.

2. Berkshire shareholders can be assured that the company _______ statements are accurate.

3. Berkshire is too well developed and managed to add intrinsic business value with new ___________ paid for with common stock.

4. Buffett criticizes __________ market theory as be does not believe it to be a truth.

5. _________ was spurious, to Buffett, compared to depreciation charges for deteriorating assets.

(see the answer key)

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