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Test Bank for Corporate Finance 12th Edition by Ross
All Chapter 1-27 Fully Covered
, Corporate Finance, 12e (Ross)
Chapter 1 Introduction to Corporate Finance
1) The treasurer and the controller of a corporation generally
report to the:
A) board of directors.
B) chairman of the board.
C) chief executive officer.
D) president.
E) chief financial officer.
Answer: E
Difficulty: 1
Easy
Section: 1.1 What is
Corporate Finance? Topic:
Management organization
and roles Bloom's:
Remember
AACSB: Reflective
Thinking Accessibility:
Keyboard Navigation
2) Which one of the following statements correctly depicts the
common chain of command in a corporation?
A) The information systems manager reports to the treasurer.
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.
Answer: B
Difficulty: 1
Easy
Section: 1.1 What is
Corporate Finance? Topic:
Management organization
and roles Bloom's:
https://www.stuvia.com/user/lectkeshi
,https://www.stuvia.com/user/lectkeshi
Remember
AACSB: Reflective
Thinking Accessibility:
Keyboard Navigation
3) Which one of the following is a capital budgeting decision?
A) Determining how much debt should be borrowed from a
particular lender
B) Deciding whether or not a new production facility should be built
C) Deciding when to repay a long-term debt
D) Determining how much inventory to keep on hand
E) Deciding how much credit to grant to a particular customer
Answer: B
, Difficulty: 1 Easy
Section: 1.1 What is
Corporate Finance? Topic:
Capital budgeting
Bloom's: Understand AACSB:
Reflective Thinking
Accessibility: Keyboard
Navigation
4) Which one of these is a correct definition?
A) Net working capital equals current assets plus current liabilities.
B) Current liabilities are debts that must be repaid in 18 months or
less.
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.
Answer:
C Difficulty:
1 Easy
Section: 1.1 What is
Corporate Finance? Topic:
Introduction to corporate
finance Bloom's: Remember
AACSB: Reflective
Thinking
Accessibility: Keyboard
Navigation
5) The corporate controller is generally responsible for which one of
these functions?
A) Capital expenditures
B) Cash management
C) Tax reporting
D) Financial planning
E) Credit management
Answer: C
Difficulty: 1
Easy
https://www.stuvia.com/user/lectkeshi
Test Bank for Corporate Finance 12th Edition by Ross
All Chapter 1-27 Fully Covered
, Corporate Finance, 12e (Ross)
Chapter 1 Introduction to Corporate Finance
1) The treasurer and the controller of a corporation generally
report to the:
A) board of directors.
B) chairman of the board.
C) chief executive officer.
D) president.
E) chief financial officer.
Answer: E
Difficulty: 1
Easy
Section: 1.1 What is
Corporate Finance? Topic:
Management organization
and roles Bloom's:
Remember
AACSB: Reflective
Thinking Accessibility:
Keyboard Navigation
2) Which one of the following statements correctly depicts the
common chain of command in a corporation?
A) The information systems manager reports to the treasurer.
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.
Answer: B
Difficulty: 1
Easy
Section: 1.1 What is
Corporate Finance? Topic:
Management organization
and roles Bloom's:
https://www.stuvia.com/user/lectkeshi
,https://www.stuvia.com/user/lectkeshi
Remember
AACSB: Reflective
Thinking Accessibility:
Keyboard Navigation
3) Which one of the following is a capital budgeting decision?
A) Determining how much debt should be borrowed from a
particular lender
B) Deciding whether or not a new production facility should be built
C) Deciding when to repay a long-term debt
D) Determining how much inventory to keep on hand
E) Deciding how much credit to grant to a particular customer
Answer: B
, Difficulty: 1 Easy
Section: 1.1 What is
Corporate Finance? Topic:
Capital budgeting
Bloom's: Understand AACSB:
Reflective Thinking
Accessibility: Keyboard
Navigation
4) Which one of these is a correct definition?
A) Net working capital equals current assets plus current liabilities.
B) Current liabilities are debts that must be repaid in 18 months or
less.
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.
Answer:
C Difficulty:
1 Easy
Section: 1.1 What is
Corporate Finance? Topic:
Introduction to corporate
finance Bloom's: Remember
AACSB: Reflective
Thinking
Accessibility: Keyboard
Navigation
5) The corporate controller is generally responsible for which one of
these functions?
A) Capital expenditures
B) Cash management
C) Tax reporting
D) Financial planning
E) Credit management
Answer: C
Difficulty: 1
Easy
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