Corporate Finance: Core Principles and
Applications 6th Edition Ross TEST BANK
Version 1 1
,1) Which one of these is an intangible asset?
A) A building
B) Accounts receivable
C) Inventory
D) A loan to a client
E) A patent
Question Details
Difficulty : 1 Basic
Topic : Asset classes
Bloom's : Remember
Section : 1.1 What Is Corporate Finance?
Accessibility : Keyboard Navigation
2) Current assets include
A) inventory and cash.
B) cash and buildings.
C) inventory and machinery.
D) equipment and cash.
E) buildings and inventory.
Question Details
Topic : Asset classes
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
3) Short-term finance
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, A) ensures sufficient equipment is available to produce the daily amount of product
desired.
B) ensures that long-term debt is acquired at the lowest possible cost.
C) ensures that dividends are paid to all stockholders on an annual basis.
D) balances the amount of company debt to the amount of available equity.
E) is concerned with managing net working capital.
Question Details
Topic : Net working capital
Difficulty : 1 Basic
Bloom's : Remember
Section : 1.1 What Is Corporate Finance?
Accessibility : Keyboard Navigation
4) Which one of the following is a capital budgeting decision?
A) Deciding whether to open an office in a foreign location
B) Determining how quickly customers are required to pay their receivables
C) Determining whether to use short- or long-term liabilities
D) Deciding how many shares of stock to repurchase
E) Determining how much cash to keep on hand
Question Details
Topic : Capital budgeting
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
5) The managers in a firm have agreed to move the company's headquarters from a rented
space to a new building that the company will purchase. The is an example of
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, A) a net working capital decision.
B) a capital budgeting decision.
C) a short-term financing decision.
D) a capital structure decision.
E) a cash flow decision.
Question Details
Topic : Capital budgeting
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
6) Which of the following is a net working capital decision?
A) Deciding whether to build an apartment building
B) Negotiating whether to lease or buy a new store location
C) Determining whether to issue debt or equity to pay for the firm's expansion
D) Deciding how much inventory to keep on hand
E) Determining whether to replace a fleet of vehicles
Question Details
Topic : Net working capital
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
7) The process of planning and managing a firm's long-term investments is referred to as
Version 1 4
Applications 6th Edition Ross TEST BANK
Version 1 1
,1) Which one of these is an intangible asset?
A) A building
B) Accounts receivable
C) Inventory
D) A loan to a client
E) A patent
Question Details
Difficulty : 1 Basic
Topic : Asset classes
Bloom's : Remember
Section : 1.1 What Is Corporate Finance?
Accessibility : Keyboard Navigation
2) Current assets include
A) inventory and cash.
B) cash and buildings.
C) inventory and machinery.
D) equipment and cash.
E) buildings and inventory.
Question Details
Topic : Asset classes
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
3) Short-term finance
Version 1 2
, A) ensures sufficient equipment is available to produce the daily amount of product
desired.
B) ensures that long-term debt is acquired at the lowest possible cost.
C) ensures that dividends are paid to all stockholders on an annual basis.
D) balances the amount of company debt to the amount of available equity.
E) is concerned with managing net working capital.
Question Details
Topic : Net working capital
Difficulty : 1 Basic
Bloom's : Remember
Section : 1.1 What Is Corporate Finance?
Accessibility : Keyboard Navigation
4) Which one of the following is a capital budgeting decision?
A) Deciding whether to open an office in a foreign location
B) Determining how quickly customers are required to pay their receivables
C) Determining whether to use short- or long-term liabilities
D) Deciding how many shares of stock to repurchase
E) Determining how much cash to keep on hand
Question Details
Topic : Capital budgeting
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
5) The managers in a firm have agreed to move the company's headquarters from a rented
space to a new building that the company will purchase. The is an example of
Version 1 3
, A) a net working capital decision.
B) a capital budgeting decision.
C) a short-term financing decision.
D) a capital structure decision.
E) a cash flow decision.
Question Details
Topic : Capital budgeting
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
6) Which of the following is a net working capital decision?
A) Deciding whether to build an apartment building
B) Negotiating whether to lease or buy a new store location
C) Determining whether to issue debt or equity to pay for the firm's expansion
D) Deciding how much inventory to keep on hand
E) Determining whether to replace a fleet of vehicles
Question Details
Topic : Net working capital
Section : 1.1 What Is Corporate Finance?
Difficulty : 2 Intermediate
Bloom's : Understand
Accessibility : Keyboard Navigation
7) The process of planning and managing a firm's long-term investments is referred to as
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