TEST BANK
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1
!x 1
,Chapter 1 x!
Studentname:_x! !x
MULTIPLE CHOICE - !x !x
Choose the one alternative that best completes thefstatement orfanswers the question.
!x !x !x !x !x !x !x !x !x !x
1) Generally, among those who report directlyto the !x !x !x !x !x !x
are the treasurer and thecontroller of a corporation.
!x !x !x !x !x !x !x
A) board of directors !x !x
B) chairperson of the board x! !x !x
C) chief executive officer
!x !x
D) president
E) chief financial officer
!x !x
2) A typical chainfof command in a corporation is described by which one of the followingfsta t
x! !x !x !x !x !x !x !x !x !x !x !x !x !x !x
ements?
A) Thefinformation systems manager reports to the treasurer. !x !x !x !x !x !x
B) The credit managerfreportsto the treasurer.
!x !x !x !x
C) The controllerfreports to the chief executive officer.
!x !x !x !x !x !x
D) Theftax managerfreports to the treasurer.
!x !x !x !x
E) The capital expenditures manager reportsto the controller.
!x !x !x !x !x !x
3) Answering which one of the following questions involves making a capital budgetingfde
!x !x !x !x !x !x !x !x !x !x !x !x
cision?
Version 1
!x 2
, A) How much debt should the firm borrow from a particular lender?
x! x! !x !x !x x! !x !x !x !x
B) Should the firm build a new production facility?
x! !x !x !x !x x! !x
C) Should the firm issue new equityto payfor its growth goals?
!x !x !x !x !x !x !x !x !x
D) How much inventoryshould the firm keep on hand?
!x !x !x !x !x !x !x
E) How much credit shouldfthe firmextend to afparticular customer?
!x !x !x !x !x !x !x
4) Which one of the following statements is accurate?
x! !x !x !x !x !x !x
A) Net working capitalequals current assets plus current liabilities.
!x !x !x !x !x !x !x
B) Current liabilities are debts that must befrepaid in 18 months orfless.
!x !x !x !x !x !x !x !x !x !x
C) Current assets are assets with short lives, such as accounts receivable.
!x !x !x !x !x !x !x !x !x !x
D) Long-term debt is defined as a residual claim on a firm’s assets.
!x !x !x !x !x !x !x !x !x !x !x
E) Tangible assets are fixed assets such as patents.
!x !x !x !x !x !x !x
5) Among theftypical responsibilitiesfof the corporatefcontroller is:
!x !x !x !x !x
A) capital expenditures management. !x !x
B) cash management. !x
C) tax reporting.
x!
D) financial planning. !x
E) credit management. !x
6) is typically the responsibilityof the corporate treasurer.
!x !x !x !x !x !x
A) Financial planning !x
B) Cost accounting !x
C) Tax reporting
!x
D) Informationsystems
E) Financialaccounting
7) A firm’s
!x define(s) its capital structure. !x !x !x
Version 1
!x 3
, A) mixture of various types of production equipment
!x !x !x !x !x !x
B) investment selections for its excess cash reserves
!x !x !x !x !x !x
C) combination of cash and cash equivalents !x !x !x !x !x
D) combination of accounts appearing on the left side of its balance sheet
!x !x !x !x !x !x !x !x !x !x !x
E) proportions of financing fromdebt and equity !x !x !x !x !x
8) The focus of short-term finance is on:
!x !x !x !x !x !x
A) the timingfof cash flows.
!x !x !x
B) acquiringfand sellingffixed assets. !x !x
C) financingflong-termprojects.
D) capital budgeting. !x
E) issuing additional shares of common stock.
!x !x !x !x !x
9) Net working capital includes:
!x !x !x
A) copyrights.
B) manufacturing equipment. !x
C) common stock. !x
D) long-term debt. !x
E) inventory.
10) is defined as planning and managing a firm’s long-termassets.
x! !x !x !x !x !x !x !x
A) Workingfcapital management !x
B) Cash management
!x
C) Cost accounting management
x! !x
D) Capitalbudgeting
E) Capitalstructure management !x
11) An amount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
x! !x !x !x !x !x !x !x x! !x !x !x
Version 1
!x 4
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1
!x 1
,Chapter 1 x!
Studentname:_x! !x
MULTIPLE CHOICE - !x !x
Choose the one alternative that best completes thefstatement orfanswers the question.
!x !x !x !x !x !x !x !x !x !x
1) Generally, among those who report directlyto the !x !x !x !x !x !x
are the treasurer and thecontroller of a corporation.
!x !x !x !x !x !x !x
A) board of directors !x !x
B) chairperson of the board x! !x !x
C) chief executive officer
!x !x
D) president
E) chief financial officer
!x !x
2) A typical chainfof command in a corporation is described by which one of the followingfsta t
x! !x !x !x !x !x !x !x !x !x !x !x !x !x !x
ements?
A) Thefinformation systems manager reports to the treasurer. !x !x !x !x !x !x
B) The credit managerfreportsto the treasurer.
!x !x !x !x
C) The controllerfreports to the chief executive officer.
!x !x !x !x !x !x
D) Theftax managerfreports to the treasurer.
!x !x !x !x
E) The capital expenditures manager reportsto the controller.
!x !x !x !x !x !x
3) Answering which one of the following questions involves making a capital budgetingfde
!x !x !x !x !x !x !x !x !x !x !x !x
cision?
Version 1
!x 2
, A) How much debt should the firm borrow from a particular lender?
x! x! !x !x !x x! !x !x !x !x
B) Should the firm build a new production facility?
x! !x !x !x !x x! !x
C) Should the firm issue new equityto payfor its growth goals?
!x !x !x !x !x !x !x !x !x
D) How much inventoryshould the firm keep on hand?
!x !x !x !x !x !x !x
E) How much credit shouldfthe firmextend to afparticular customer?
!x !x !x !x !x !x !x
4) Which one of the following statements is accurate?
x! !x !x !x !x !x !x
A) Net working capitalequals current assets plus current liabilities.
!x !x !x !x !x !x !x
B) Current liabilities are debts that must befrepaid in 18 months orfless.
!x !x !x !x !x !x !x !x !x !x
C) Current assets are assets with short lives, such as accounts receivable.
!x !x !x !x !x !x !x !x !x !x
D) Long-term debt is defined as a residual claim on a firm’s assets.
!x !x !x !x !x !x !x !x !x !x !x
E) Tangible assets are fixed assets such as patents.
!x !x !x !x !x !x !x
5) Among theftypical responsibilitiesfof the corporatefcontroller is:
!x !x !x !x !x
A) capital expenditures management. !x !x
B) cash management. !x
C) tax reporting.
x!
D) financial planning. !x
E) credit management. !x
6) is typically the responsibilityof the corporate treasurer.
!x !x !x !x !x !x
A) Financial planning !x
B) Cost accounting !x
C) Tax reporting
!x
D) Informationsystems
E) Financialaccounting
7) A firm’s
!x define(s) its capital structure. !x !x !x
Version 1
!x 3
, A) mixture of various types of production equipment
!x !x !x !x !x !x
B) investment selections for its excess cash reserves
!x !x !x !x !x !x
C) combination of cash and cash equivalents !x !x !x !x !x
D) combination of accounts appearing on the left side of its balance sheet
!x !x !x !x !x !x !x !x !x !x !x
E) proportions of financing fromdebt and equity !x !x !x !x !x
8) The focus of short-term finance is on:
!x !x !x !x !x !x
A) the timingfof cash flows.
!x !x !x
B) acquiringfand sellingffixed assets. !x !x
C) financingflong-termprojects.
D) capital budgeting. !x
E) issuing additional shares of common stock.
!x !x !x !x !x
9) Net working capital includes:
!x !x !x
A) copyrights.
B) manufacturing equipment. !x
C) common stock. !x
D) long-term debt. !x
E) inventory.
10) is defined as planning and managing a firm’s long-termassets.
x! !x !x !x !x !x !x !x
A) Workingfcapital management !x
B) Cash management
!x
C) Cost accounting management
x! !x
D) Capitalbudgeting
E) Capitalstructure management !x
11) An amount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
x! !x !x !x !x !x !x !x x! !x !x !x
Version 1
!x 4
