Test Bank for Corporate Finance 13th Edition By Stephen Ross, Randolph Westerfield, Chapters 1 - 21, Complete Practice Questions with Answers

Test Bank for Corporate Finance
13th Edition By Stephen Ross, Randolph Westerfield, Chapters 1 - 21, Complete




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ys 1

,Chapter 1 ys




Student name:_ ys ys




MULTIPLE CHOICE - ys ys




Choose the one alternative that best completes the statement oranswers the question.
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1) Generally, among those who report directly to the ys ys ys ys ys ys ys




are the treasurer and thecontroller of a corporation.
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A) board of directors ys ys




B) chairperson of the board ys ys ys




C) chief executive officer
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D) president
E) chief financial officer
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2) A typical chain of command in a corporation is described by which one of the followingst
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atements?

A) The information systems manager reports to the treasurer.
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B) The credit manager reports to the treasurer.
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C) The controller reports to the chief executive officer.
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D) The tax manager reports to the treasurer.
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E) The capital expenditures manager reports to the controller.
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3) Answering which one of the following questions involves making a capital budgetingd
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ecision?




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, A) How much debt should the firm borrow from a particular lender?
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B) Should the firm build a new production facility?
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C) Should the firm issue new equity to pay for its growth goals?
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D) How much inventory should the firm keep on hand?
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E) How much credit should the firm extend to a particular customer?
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4) Which one of the following statements is accurate?
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A) Net working capital equals current assets plus current liabilities.
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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.
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D) Long-term debt is defined as a residual claim on a firm’s assets.
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E) Tangible assets are fixed assets such as patents.
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5) Among the typical responsibilities of the corporate controller is:
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A) capital expenditures management. ys ys




B) cash management. ys




C) tax reporting.
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D) financial planning. ys




E) credit management. ys




6) ys is typically the responsibility of the corporate treasurer.
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A) Financial planning ys




B) Cost accounting ys




C) Tax reporting
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D) Information systems ys




E) Financial accounting ys




7) A firm’s
ys define(s) its capital structure. ys ys ys




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, A) mixture of various types of production equipment
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B) investment selections for its excess cash reserves ys ys ys ys ys ys




C) combination of cash and cash equivalents ys ys ys ys ys




D) combination of accounts appearing on the left side of its balance sheet
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E) proportions of financing from debt and equity ys ys ys ys ys ys




8) The focus of short-term finance is on:
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A) the timing of cash flows.
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B) acquiring and selling fixed assets. ys ys ys ys




C) financing long-term projects. ys ys




D) capital budgeting. ys




E) issuing additional shares of common stock.
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9) Net working capital includes:
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A) copyrights.
B) manufacturing equipment. ys




C) common stock. ys




D) long-term debt. ys




E) inventory.



10) ys is defined as planning and managing a firm’s long-term assets.
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A) Working capital management ys ys




B) Cash management
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C) Cost accounting management
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D) Capital budgeting ys




E) Capital structure management
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11) An amount the firms owes, which it must repay within twelve months, is called a(n):
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