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?
Version 1 2
, 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.
C) Current assets are assets with short lives, such as accounts receivable.
D) Long-term debt is defined as a residual claim on a firm’s assets.
E) Tangible assets are fixed assets such as patents.
5) Among dthe dtypical dresponsibilities dof dthe dcorporate dcontroller dis:
A) capital dexpenditures dmanagement.
B) cash dmanagement.
C) tax dreporting.
D) financial dplanning.
E) credit dmanagement.
6) d is dtypically dthe dresponsibility dof dthe dcorporate dtreasurer.
A) Financial dplanning
B) Cost daccounting
C) Tax dreporting
D) Information dsystems
E) Financial daccounting
7) A dfirm’s define(s) dits dcapital dstructure.
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, A) mixture dof dvarious dtypes dof dproduction dequipment
B) investment dselections dfor dits dexcess dcash dreserves
C) combination dof dcash dand dcash dequivalents
D) combination dof daccounts dappearing don dthe dleft dside dof dits dbalance dsheet
E) proportions dof dfinancing dfrom ddebt dand dequity
8) The dfocus dof dshort-term dfinance dis don:
A) the dtiming dof dcash dflows.
B) acquiring dand dselling dfixed dassets.
C) financing dlong-term dprojects.
D) capital dbudgeting.
E) issuing dadditional dshares dof dcommon dstock.
9) Net dworking dcapital dincludes:
A) copyrights.
B) manufacturing dequipment.
C) common dstock.
D) long-term ddebt.
E) inventory.
10) d is ddefined das dplanning dand dmanaging da dfirm’s dlong-term dassets.
A) Working dcapital dmanagement
B) Cash dmanagement
C) Cost daccounting dmanagement
D) Capital dbudgeting
E) Capital dstructure dmanagement
11) An damount dthe dfirms dowes, dwhich dit dmust drepay dwithin dtwelve dmonths, dis dcalled
da(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?
Version 1 2
, 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.
C) Current assets are assets with short lives, such as accounts receivable.
D) Long-term debt is defined as a residual claim on a firm’s assets.
E) Tangible assets are fixed assets such as patents.
5) Among dthe dtypical dresponsibilities dof dthe dcorporate dcontroller dis:
A) capital dexpenditures dmanagement.
B) cash dmanagement.
C) tax dreporting.
D) financial dplanning.
E) credit dmanagement.
6) d is dtypically dthe dresponsibility dof dthe dcorporate dtreasurer.
A) Financial dplanning
B) Cost daccounting
C) Tax dreporting
D) Information dsystems
E) Financial daccounting
7) A dfirm’s define(s) dits dcapital dstructure.
Version 1 3
, A) mixture dof dvarious dtypes dof dproduction dequipment
B) investment dselections dfor dits dexcess dcash dreserves
C) combination dof dcash dand dcash dequivalents
D) combination dof daccounts dappearing don dthe dleft dside dof dits dbalance dsheet
E) proportions dof dfinancing dfrom ddebt dand dequity
8) The dfocus dof dshort-term dfinance dis don:
A) the dtiming dof dcash dflows.
B) acquiring dand dselling dfixed dassets.
C) financing dlong-term dprojects.
D) capital dbudgeting.
E) issuing dadditional dshares dof dcommon dstock.
9) Net dworking dcapital dincludes:
A) copyrights.
B) manufacturing dequipment.
C) common dstock.
D) long-term ddebt.
E) inventory.
10) d is ddefined das dplanning dand dmanaging da dfirm’s dlong-term dassets.
A) Working dcapital dmanagement
B) Cash dmanagement
C) Cost daccounting dmanagement
D) Capital dbudgeting
E) Capital dstructure dmanagement
11) An damount dthe dfirms dowes, dwhich dit dmust drepay dwithin dtwelve dmonths, dis dcalled
da(n):
Version 1 4
