Test Bank For Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, ISBN 978-1260772388, Complete Guide A+.

TestBank forCorporateFinance
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13thEdition ByStephen Ross, Randolph Westerfield,
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bChapters 1 - 21, Complete
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,Chapter1 b




Student name:_
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MULTIPLECHOICE - Choose the onealternative that best completes the statement oranswers the
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question.
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1) Generally, among those who report directlyto the are the treasurer and the
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controller ofa corporation.
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A) board ofdirectors b b




B) chairpersonofthe board b b b




C) chiefexecutive officer b b




D) president
E) chieffinancialofficer b b




2) Atypicalchain ofcommand ina corporation is described bywhich one ofthe following
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statements?
b




A) The informationsystems manager reportstothe treasurer.
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B) The credit manager reportstothe treasurer.
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C) The controller reportstothe chiefexecutive officer.
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D) Thetax manager reportsto the treasurer.
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E) The capitalexpenditures manager reportsto the controller.
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3) Answering whichone ofthe following questions involves making a capitalbudgeting
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decision?
b




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, A) Howmuchdebt should the firmborrow froma particular lender?
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B) Shouldthe firm build anew production facility? b b b b b b b




C) Should the firm issue new equityto payfor its growthgoals?
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D) How much inventoryshould the firmkeep onhand?
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E) Howmuchcredit should the firmextend to a particular customer?
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4) Whichone ofthe following statements is accurate?
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A) Net working capitalequalscurrent assetspluscurrent liabilities.
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B) Current liabilitiesaredebtsthat must berepaid in18 monthsorless.
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C) Current assets areassets withshort lives, such as accounts receivable.
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D) Long-termdebt is defined as a residualclaimon a firm’s assets. b b b b b b b b b b b




E) Tangible assets are fixed assets suchas patents. b b b b b b b




5) Among the typicalresponsibilitiesofthe corporatecontroller is:
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A) capitalexpenditures management. b b




B) cash management. b




C) taxreporting.
b




D) financialplanning. b




E) credit management. b




6) b is typically the responsibilityofthe corporatetreasurer.
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A) Financialplanning b




B) Cost accounting b




C) Taxreporting b




D) Informationsystems b




E) Financialaccounting b




7) A firm’sb define(s) its capitalstructure. b b b




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, A) mixture ofvarious types ofproductionequipment
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B) investment selections for itsexcesscashreserves b b b b b b




C) combinationofcash and cashequivalents b b b b b




D) combinationofaccounts appearing onthe left side of its balance sheet b b b b b b b b b b b




E) proportionsoffinancing fromdebt and equity b b b b b b




8) The focus ofshort-termfinance is on:
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A) the timing ofcash flows.
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B) acquiring and selling fixed assets. b b b b




C) financing long-termprojects. b b




D) capitalbudgeting. b




E) issuing additionalshares ofcommonstock.
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9) Net workingcapitalincludes:
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A) copyrights.
B) manufacturing equipment. b




C) commonstock. b




D) long-termdebt. b




E) inventory.



10) b isdefined as planning and managing a firm’s long-termassets.
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A) Workingcapitalmanagement b b




B) Cashmanagement
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C) Cost accountingmanagement
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D) Capitalbudgeting b




E) Capitalstructuremanagement b b




11) Anamount the firms owes, which it must repaywithintwelve months, is called a(n):
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