Test Bank for Corporate Finance
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1 1
,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.
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 bassets bare bassets bwith bshort blives, bsuch bas baccounts breceivable.
D) Long-term bdebt b is bdefined bas ba bresidual bclaim bon ba bfirm’s bassets.
E) Tangible bassets bare bfixed bassets bsuch bas bpatents.
5) Among bthe btypical bresponsibilities bof bthe bcorporate bcontroller bis:
A) capital bexpenditures bmanagement.
B) cash bmanagement.
C) tax breporting.
D) financial bplanning.
E) credit bmanagement.
6) b is btypically bthe bresponsibility bof bthe bcorporate btreasurer.
A) Financial bplanning
B) Cost baccounting
C) Tax breporting
D) Information bsystems
E) Financial baccounting
7) A bfirm’s define(s) bits bcapital bstructure.
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, A) mixture bof bvarious btypes bof bproduction bequipment
B) investment bselections bfor bits bexcess bcash breserves
C) combination bof bcash band bcash bequivalents
D) combination bof baccounts bappearing bon bthe bleft bside bof bits bbalance bsheet
E) proportions bof bfinancing bfrom bdebt band bequity
8) The bfocus bof bshort-term bfinance bis bon:
A) the btiming bof bcash bflows.
B) acquiring band bselling bfixed bassets.
C) financing blong-term bprojects.
D) capital bbudgeting.
E) issuing badditional bshares bof bcommon bstock.
9) Net bworking bcapital bincludes:
A) copyrights.
B) manufacturing bequipment.
C) common bstock.
D) long-term bdebt.
E) inventory.
10) b is bdefined bas bplanning band bmanaging ba bfirm’s blong-term bassets.
A) Working bcapital bmanagement
B) Cash bmanagement
C) Cost baccounting bmanagement
D) Capital bbudgeting
E) Capital bstructure bmanagement
11) An bamount bthe bfirms bowes, bwhich bit bmust brepay bwithin btwelve bmonths, bis bcalled
ba(n):
Version 1 4
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1 1
,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.
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 bassets bare bassets bwith bshort blives, bsuch bas baccounts breceivable.
D) Long-term bdebt b is bdefined bas ba bresidual bclaim bon ba bfirm’s bassets.
E) Tangible bassets bare bfixed bassets bsuch bas bpatents.
5) Among bthe btypical bresponsibilities bof bthe bcorporate bcontroller bis:
A) capital bexpenditures bmanagement.
B) cash bmanagement.
C) tax breporting.
D) financial bplanning.
E) credit bmanagement.
6) b is btypically bthe bresponsibility bof bthe bcorporate btreasurer.
A) Financial bplanning
B) Cost baccounting
C) Tax breporting
D) Information bsystems
E) Financial baccounting
7) A bfirm’s define(s) bits bcapital bstructure.
Version 1 3
, A) mixture bof bvarious btypes bof bproduction bequipment
B) investment bselections bfor bits bexcess bcash breserves
C) combination bof bcash band bcash bequivalents
D) combination bof baccounts bappearing bon bthe bleft bside bof bits bbalance bsheet
E) proportions bof bfinancing bfrom bdebt band bequity
8) The bfocus bof bshort-term bfinance bis bon:
A) the btiming bof bcash bflows.
B) acquiring band bselling bfixed bassets.
C) financing blong-term bprojects.
D) capital bbudgeting.
E) issuing badditional bshares bof bcommon bstock.
9) Net bworking bcapital bincludes:
A) copyrights.
B) manufacturing bequipment.
C) common bstock.
D) long-term bdebt.
E) inventory.
10) b is bdefined bas bplanning band bmanaging ba bfirm’s blong-term bassets.
A) Working bcapital bmanagement
B) Cash bmanagement
C) Cost baccounting bmanagement
D) Capital bbudgeting
E) Capital bstructure bmanagement
11) An bamount bthe bfirms bowes, bwhich bit bmust brepay bwithin btwelve bmonths, bis bcalled
ba(n):
Version 1 4
