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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. A purchased firm might have _______ that increases in value over time by the amount of inflation and successful operating results.
(a) Economic goodwill.
(b) Operating goodwill.
(c) Stock goodwill.
(d) Money goodwill.

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

3. Berkshire's consolidated statements met outside __________, according to the book.
(a) Standards.
(b) Requirements.
(c) Movements.
(d) Values.

4. What was NOT one of the three tax-free gifting tactics that Buffett suggested to shareholders?
(a) Will gifting.
(b) Bargain sale.
(c) Married couple gifting.
(d) Partnership form.

5. Berkshire Hathaway's insurance companies maintained how many permanent common stock holdings?
(a) Ten.
(b) Four.
(c) Three.
(d) Five.

Short Answer Questions

1. Main _______ changes allowed cash-basis accounting for the costs of a corporation.

2. Buffett believed that _______ data was important to his and Munger's decision making.

3. What was the title of Buffett's partner in the company they shared?

4. Buffett avoids _________ share value to existing shareholders by true value for value merger, using stock as inflated currency.

5. Buffett and Munger promised to provide sufficient additional _______ to evaluate true results.

(see the answer key)

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