TEST BANK
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1
w# 1
,Chapter 1 w#
Student name:_
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MULTIPLE CHOICE - w# w#
Choose the one alternative that best completes thefstatement orfanswers the question.
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1) Generally, among those who report directlyto the
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are the treasurer and thecontroller of a corporation.
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A) board of directors w# w#
B) chairperson of the board w# w# w#
C) chief executive officer
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D) president
E) chief financial officer
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2) A typical chainfof command in a corporation is described by which one of the followingf
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sta tements?
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A) Thefinformation systems manager reports to the treasurer. w# w# w# w# w# w#
B) The credit managerfreportsto the treasurer.
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C) The controllerfreports to the chief executive officer.
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D) Theftax managerfreports to the treasurer.
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E) The capital expenditures manager reportsto the controller.
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3) Answering which one of the following questions involves making a capital budgetingf
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de cision?
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Version 1
w# 2
, A) How much debt should the firm borrow from a particular lender?
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B) Should the firm build a new production facility?
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C) Should the firm issue new equityto payfor its growth goals?
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D) How much inventoryshould the firm keep on hand?
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E) How much credit shouldfthe firmextend to afparticular customer?
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4) Which one of the following statements is accurate?
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A) Net working capitalequals current assets plus current liabilities.
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B) Current liabilities are debts that must befrepaid in 18 months orfless.
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C) Current assets are assets with short lives, such as accounts receivable.
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D) Long-term debt is defined as a residual claim on a firm’s assets.
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E) Tangible assets are fixed assets such as patents.
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5) Among theftypical responsibilitiesfof the corporatefcontroller is:
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A) capital expenditures management.
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B) cash management.
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C) tax reporting.
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D) financial planning. w#
E) credit management. w#
6) is typically the responsibilityof the corporate treasurer.
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A) Financial planning w#
B) Cost accounting w#
C) Tax reporting
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D) Informationsystems
E) Financialaccounting
7) A firm’s
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Version 1
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, A) mixture of various types of production equipment
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B) investment selections for its excess cash reserves
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C) combination of cash and cash equivalents w# w# w# w# w#
D) combination of accounts appearing on the left side of its balance sheet
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E) proportions of financing fromdebt and equity
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8) The focus of short-term finance is on:
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A) the timingfof cash flows.
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B) acquiringfand sellingffixed assets. w# w#
C) financingflong-termprojects.
D) capital budgeting. w#
E) issuing additional shares of common stock.
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9) Net working capital includes:
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A) copyrights.
B) manufacturing equipment. w#
C) common stock. w#
D) long-term debt. w#
E) inventory.
10) is defined as planning and managing a firm’s long-termassets.
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A) Workingfcapital management w#
B) Cash management
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C) Cost accounting management
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D) Capitalbudgeting
E) Capitalstructure management w#
11) An amount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
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Version 1
w# 4
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1
w# 1
,Chapter 1 w#
Student name:_
w# w#
MULTIPLE CHOICE - w# w#
Choose the one alternative that best completes thefstatement orfanswers the question.
w# w# w# w# w# w# w# w# w# w#
1) Generally, among those who report directlyto the
w# w# w# w# w# w#
are the treasurer and thecontroller of a corporation.
w# w# w# w# w# w# w#
A) board of directors w# w#
B) chairperson of the board w# w# w#
C) chief executive officer
w# w#
D) president
E) chief financial officer
w# w#
2) A typical chainfof command in a corporation is described by which one of the followingf
w# w# w# w# w# w# w# w# w# w# w# w# w# w#
sta tements?
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A) Thefinformation systems manager reports to the treasurer. w# w# w# w# w# w#
B) The credit managerfreportsto the treasurer.
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C) The controllerfreports to the chief executive officer.
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D) Theftax managerfreports to the treasurer.
w# w# w# w#
E) The capital expenditures manager reportsto the controller.
w# w# w# w# w# w#
3) Answering which one of the following questions involves making a capital budgetingf
w# w# w# w# w# w# w# w# w# w# w#
de cision?
w#
Version 1
w# 2
, A) How much debt should the firm borrow from a particular lender?
w# w# w# w# w# w# w# w# w# w#
B) Should the firm build a new production facility?
w# w# w# w# w# w# w#
C) Should the firm issue new equityto payfor its growth goals?
w# w# w# w# w# w# w# w# w#
D) How much inventoryshould the firm keep on hand?
w# w# w# w# w# w# w#
E) How much credit shouldfthe firmextend to afparticular customer?
w# w# w# w# w# w# w#
4) Which one of the following statements is accurate?
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A) Net working capitalequals current assets plus current liabilities.
w# w# w# w# w# w# w#
B) Current liabilities are debts that must befrepaid in 18 months orfless.
w# w# w# w# w# w# w# w# w# w#
C) Current assets are assets with short lives, such as accounts receivable.
w# w# w# w# w# w# w# w# w# w#
D) Long-term debt is defined as a residual claim on a firm’s assets.
w# w# w# w# w# w# w# w# w# w# w#
E) Tangible assets are fixed assets such as patents.
w# w# w# w# w# w# w#
5) Among theftypical responsibilitiesfof the corporatefcontroller is:
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A) capital expenditures management.
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B) cash management.
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C) tax reporting.
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D) financial planning. w#
E) credit management. w#
6) is typically the responsibilityof the corporate treasurer.
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A) Financial planning w#
B) Cost accounting w#
C) Tax reporting
w#
D) Informationsystems
E) Financialaccounting
7) A firm’s
w# define(s) its capital structure. w# w# w#
Version 1
w# 3
, A) mixture of various types of production equipment
w# w# w# w# w# w#
B) investment selections for its excess cash reserves
w# w# w# w# w# w#
C) combination of cash and cash equivalents w# w# w# w# w#
D) combination of accounts appearing on the left side of its balance sheet
w# w# w# w# w# w# w# w# w# w# w#
E) proportions of financing fromdebt and equity
w# w# w# w# w#
8) The focus of short-term finance is on:
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A) the timingfof cash flows.
w# w# w#
B) acquiringfand sellingffixed assets. w# w#
C) financingflong-termprojects.
D) capital budgeting. w#
E) issuing additional shares of common stock.
w# w# w# w# w#
9) Net working capital includes:
w# w# w#
A) copyrights.
B) manufacturing equipment. w#
C) common stock. w#
D) long-term debt. w#
E) inventory.
10) is defined as planning and managing a firm’s long-termassets.
w# w# w# w# w# w# w# w#
A) Workingfcapital management w#
B) Cash management
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C) Cost accounting management
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D) Capitalbudgeting
E) Capitalstructure management w#
11) An amount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
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Version 1
w# 4
