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TEST BANK FOR
Corporate Finance 13th Stephen Ross, Randolph Westerfield,
Jeffrey Jaffe
Chapter 1 Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best
completes the statement or answers the question.
1) Generally, among those who report directly to the
________ are the treasurer and the controller of a
corporation.
A) board of directors
B) chairperson of the board
C) chief executive officer
D) president
E) chief financial officer
2) A typical chain of command in a corporation is described
by which one of the following statements?
A) The information systems manager reports to the
treasurer.
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, B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
D) The tax manager reports to the treasurer.
E) The capital expenditures manager reports to the
controller.
3) Answering which one of the following questions involves
making a capital budgeting decision?
A) How much debt should the firm borrow from a
particular lender?
B) Should the firm build a new production facility?
C) Should the firm issue new equity to pay for its growth
goals?
D) How much inventory should the firm keep on hand?
E) How much credit should the firm extend to a particular
customer?
4) Which one of the following statements is accurate?
A) Net working capital equals current assets plus current
liabilities.
B) Current liabilities are debts that must be repaid in 18
months or less.
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, C) Current assets are assets with short lives, such as
accounts receivable.
D) Long-term debt is defined as a residual claim on a firm’s
assets.
E) Tangible assets are fixed assets such as patents.
5) Among the typical responsibilities of the corporate
controller is:
A) capital expenditures management.
B) cash management.
C) tax reporting.
D) financial planning.
E) credit management.
6) ________ is typically the responsibility of the corporate
treasurer.
A) Financial planning
B) Cost accounting
C) Tax reporting
D) Information systems
E) Financial accounting
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, 7) A firm’s ________ define(s) its capital structure.
A) mixture of various types of production equipment
B) investment selections for its excess cash reserves
C) combination of cash and cash equivalents
D) combination of accounts appearing on the left side of its
balance sheet E) proportions of financing from debt
and equity
8) The focus of short-term finance is on:
A) the timing of cash flows.
B) acquiring and selling fixed assets.
C) financing long-term projects.
D) capital budgeting.
E) issuing additional shares of common stock.
9) Net working capital includes:
A) copyrights.
B) manufacturing equipment.
C) common stock.
D) long-term debt.
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TEST BANK FOR
Corporate Finance 13th Stephen Ross, Randolph Westerfield,
Jeffrey Jaffe
Chapter 1 Student name:__________
MULTIPLE CHOICE - Choose the one alternative that best
completes the statement or answers the question.
1) Generally, among those who report directly to the
________ are the treasurer and the controller of a
corporation.
A) board of directors
B) chairperson of the board
C) chief executive officer
D) president
E) chief financial officer
2) A typical chain of command in a corporation is described
by which one of the following statements?
A) The information systems manager reports to the
treasurer.
Version 1 1
, B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
D) The tax manager reports to the treasurer.
E) The capital expenditures manager reports to the
controller.
3) Answering which one of the following questions involves
making a capital budgeting decision?
A) How much debt should the firm borrow from a
particular lender?
B) Should the firm build a new production facility?
C) Should the firm issue new equity to pay for its growth
goals?
D) How much inventory should the firm keep on hand?
E) How much credit should the firm extend to a particular
customer?
4) Which one of the following statements is accurate?
A) Net working capital equals current assets plus current
liabilities.
B) Current liabilities are debts that must be repaid in 18
months or less.
Version 1 2
, C) Current assets are assets with short lives, such as
accounts receivable.
D) Long-term debt is defined as a residual claim on a firm’s
assets.
E) Tangible assets are fixed assets such as patents.
5) Among the typical responsibilities of the corporate
controller is:
A) capital expenditures management.
B) cash management.
C) tax reporting.
D) financial planning.
E) credit management.
6) ________ is typically the responsibility of the corporate
treasurer.
A) Financial planning
B) Cost accounting
C) Tax reporting
D) Information systems
E) Financial accounting
Version 1 3
, 7) A firm’s ________ define(s) its capital structure.
A) mixture of various types of production equipment
B) investment selections for its excess cash reserves
C) combination of cash and cash equivalents
D) combination of accounts appearing on the left side of its
balance sheet E) proportions of financing from debt
and equity
8) The focus of short-term finance is on:
A) the timing of cash flows.
B) acquiring and selling fixed assets.
C) financing long-term projects.
D) capital budgeting.
E) issuing additional shares of common stock.
9) Net working capital includes:
A) copyrights.
B) manufacturing equipment.
C) common stock.
D) long-term debt.
Version 1 4
