The Text Argues That Which Statement Is TRUE About Warren

question 201

Multiple Choice

The text argues that which statement is TRUE about Warren Buffett?

• A) His past performance has been purely a result of luck.
• B) He has not been able to beat the market at any time.
• C) He always beats the market using inside information.
• D) It has become harder for him to beat the market over time.

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Definitions:

Investing Activities

Financial activities related to the acquisition or sale of long-term assets and other investments that are not equivalent to cash.

Indirect Method

A cash flow statement preparation approach that adjusts net income for changes in non-cash accounts to compute cash flow from operating activities.

Direct Method

The direct method is a way of preparing cash flow statements where actual cash flows from operating activities are reported instead of adjustments from net income.

Direct Approach

A method used in accounting that focuses on the immediate recognition of revenues and expenses when they are incurred, without adjusting for accruals.