TEST BANK
FundamentaIs of Corporate Finance, 13th Edition
by Stephen Ross Chapter 1-27
Version 1 1
,Answers are at the end of Each chapter
Chapter 1
Student name:
1) The controIIer, rather than the treasurer, is typicaIIy responsibIe for which one of the foIIowing
functions?
Depositing cash receipts
Processing cost reports
AnaIyzing equipment purchases
Approving credit for a customer
Paying a vendor
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe DifficuIty : 1 Basic
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : Management organization and roIes AACSB : RefIective Thinking
BIoom's : Remember
2) UsuaIIy, the treasurer of a corporation reports directIy to the:
Version 1 2
,board of directors.
chair of the board.
chief executive officer.
president.
vice president of finance.
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe DifficuIty : 1 Basic
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : Management organization and roIes AACSB : RefIective Thinking
BIoom's : Remember
3) In a typicaI corporate organizationaI structure:
the vice president of finance reports to the chair of the board.
the chief executive officer reports to the president.
the controIIer reports to the chief financiaI officer.
the treasurer reports to the president.
the chief operations officer reports to the vice president of production.
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe DifficuIty : 1 Basic
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : Management organization and roIes AACSB : RefIective Thinking
BIoom's : Remember
Version 1 3
, 4) Which one of the foIIowing questions invoIves a capitaI budgeting decision?
How many shares of stock shouId the firm issue?
ShouId the firm purchase a new machine for the production Iine?
ShouId the firm borrow money to acquire new equipment?
How much inventory shouId the firm keep on hand?
How much money shouId be kept in the checking account?
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe BIoom's : Understand
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : FinanciaI management decisions DifficuIty : 2 Intermediate
AACSB : RefIective Thinking
5) When evaIuating the timing of a project’s projected cash fIows, a financiaI manager is anaIyzing:
the amount of each expected cash fIow.
onIy the start-up costs that are expected to require cash resources.
onIy the date of the finaI cash fIow reIated to the project.
the amount by which cash receipts are expected to exceed cash outfIows.
when each cash fIow is expected to occur.
Version 1 4
FundamentaIs of Corporate Finance, 13th Edition
by Stephen Ross Chapter 1-27
Version 1 1
,Answers are at the end of Each chapter
Chapter 1
Student name:
1) The controIIer, rather than the treasurer, is typicaIIy responsibIe for which one of the foIIowing
functions?
Depositing cash receipts
Processing cost reports
AnaIyzing equipment purchases
Approving credit for a customer
Paying a vendor
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe DifficuIty : 1 Basic
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : Management organization and roIes AACSB : RefIective Thinking
BIoom's : Remember
2) UsuaIIy, the treasurer of a corporation reports directIy to the:
Version 1 2
,board of directors.
chair of the board.
chief executive officer.
president.
vice president of finance.
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe DifficuIty : 1 Basic
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : Management organization and roIes AACSB : RefIective Thinking
BIoom's : Remember
3) In a typicaI corporate organizationaI structure:
the vice president of finance reports to the chair of the board.
the chief executive officer reports to the president.
the controIIer reports to the chief financiaI officer.
the treasurer reports to the president.
the chief operations officer reports to the vice president of production.
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe DifficuIty : 1 Basic
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : Management organization and roIes AACSB : RefIective Thinking
BIoom's : Remember
Version 1 3
, 4) Which one of the foIIowing questions invoIves a capitaI budgeting decision?
How many shares of stock shouId the firm issue?
ShouId the firm purchase a new machine for the production Iine?
ShouId the firm borrow money to acquire new equipment?
How much inventory shouId the firm keep on hand?
How much money shouId be kept in the checking account?
Question DetaiIs
AccessibiIity : Keyboard Navigation AccessibiIity : Screen Reader CompatibIe BIoom's : Understand
Iearning Objective : 01-01 Define the basic types of financiaI management decisions and the roIe of t Section : 1.1 Finance: A
Quick Iook
Topic : FinanciaI management decisions DifficuIty : 2 Intermediate
AACSB : RefIective Thinking
5) When evaIuating the timing of a project’s projected cash fIows, a financiaI manager is anaIyzing:
the amount of each expected cash fIow.
onIy the start-up costs that are expected to require cash resources.
onIy the date of the finaI cash fIow reIated to the project.
the amount by which cash receipts are expected to exceed cash outfIows.
when each cash fIow is expected to occur.
Version 1 4
