TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Westerfield, Verified Chapters 1 - 31, Complete Newest Version

TEST BANK
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete




Version 1
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,Chapter 1 Xi




Student name:_
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MULTIPLE CHOICE - Xi Xi



Choose the one alternative that best completes thefstatement orfanswers the question.
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1) Generally, among those who report directlyto the
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are the treasurer and thecontroller of a corporation.
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A) board of directors Xi Xi



B) chairperson of the board Xi Xi Xi



C) chief executive officer
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D) president
E) chief financial officer
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2) A typical chainfof command in a corporation is described by which one of the followingfsta
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tements?
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A) Thefinformation systems manager reports to the treasurer. Xi Xi Xi Xi Xi Xi


B) The credit managerfreportsto the treasurer.
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C) The controllerfreports to the chief executive officer.
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D) Theftax managerfreports to the treasurer.
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E) The capital expenditures manager reportsto the controller.
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3) Answering which one of the following questions involves making a capital budgetingfde
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cision?
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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 equityto payfor its growth goals?
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D) How much inventoryshould the firm keep on hand?
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E) How much credit shouldfthe firmextend to afparticular customer?
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4) Which one of the following statements is accurate?
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A) Net working capitalequals current assets plus current liabilities.
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B) Current liabilities are debts that must befrepaid in 18 months orfless.
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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 theftypical responsibilitiesfof the corporatefcontroller is:
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A) capital expenditures management.
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B) cash management.
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C) tax reporting.
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D) financial planning. Xi


E) credit management. Xi




6) is typically the responsibilityof the corporate treasurer.
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A) Financial planning Xi


B) Cost accounting Xi



C) Tax reporting
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D) Informationsystems
E) Financialaccounting



7) A firm’s
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, A) mixture of various types of production equipment
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B) investment selections for its excess cash reserves
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C) combination of cash and cash equivalents Xi Xi Xi Xi Xi


D) combination of accounts appearing on the left side of its balance sheet
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E) proportions of financing fromdebt and equity
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8) The focus of short-term finance is on:
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A) the timingfof cash flows.
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B) acquiringfand sellingffixed assets. Xi Xi



C) financingflong-termprojects.
D) capital budgeting. Xi



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. Xi


C) common stock. Xi



D) long-term debt. Xi



E) inventory.



10) is defined as planning and managing a firm’s long-termassets.
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A) Workingfcapital management Xi



B) Cash management
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C) Cost accounting management
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D) Capitalbudgeting
E) Capitalstructure management Xi




11) An amount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
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