TEST BANK x
Corporate Finance 13th Edition
x x x
By Stephen Ross, Randolph Westerfield,
x x x x
Chapters 1 - 21, Complete
x x x x x
Versionx1 1
,Chapter 1x
Student name:_
x x
MULTIPLExCHOICEx-
Choosexthexonexalternativexthatxbestxcompletesxthefstatementxorfanswersxthexquestion.
1) Generally,xamongxthosexwhoxreportxdirectlytoxthe
arexthextreasurerxandxthecontrollerxofxaxcorporation.
A) boardxofxdirectors
B) chairpersonxofxthexboard
C) chiefxexecutivexofficer
D) president
E) chiefxfinancialxofficer
2) Axtypicalxchainfofxcommandxinxaxcorporationxisxdescribedxbyxwhichxonexofxthexfollowingfstaxt
ements?
A) Thefinformationxsystemsxmanagerxreportsxtoxthextreasurer.
B) Thexcreditxmanagerfreportstoxthextreasurer.
C) Thexcontrollerfreportsxtoxthexchiefxexecutivexofficer.
D) Theftaxxmanagerfreportsxtoxthextreasurer.
E) Thexcapitalxexpendituresxmanagerxreportstoxthexcontroller.
3) Answeringxwhichxonexofxthexfollowingxquestionsxinvolvesxmakingxaxcapitalxbudgetingfdexc
ision?
Versionx1 2
, A) Howxmuchxdebtxshouldxthexfirmxborrowxfromxaxparticularxlender?
B) Shouldxthexfirmxbuildxaxnewxproductionxfacility?
C) Shouldxthexfirmxissuexnewxequitytoxpayforxitsxgrowthxgoals?
D) Howxmuchxinventoryshouldxthexfirmxkeepxonxhand?
E) Howxmuchxcreditxshouldfthexfirmextendxtoxafparticularxcustomer?
4) Whichxonexofxthexfollowingxstatementsxisxaccurate?
A) Netxworkingxcapitalequalsxcurrentxassetsxplusxcurrentxliabilities.
B) Currentxliabilitiesxarexdebtsxthatxmustxbefrepaidxinx18xmonthsxorfless.
C) Currentxassetsxarexassetsxwithxshortxlives,xsuchxasxaccountsxreceivable.
D) Long-termxdebtxisxdefinedxasxaxresidualxclaimxonxaxfirm’sxassets.
E) Tangiblexassetsxarexfixedxassetsxsuchxasxpatents.
5) Amongxtheftypicalxresponsibilitiesfofxthexcorporatefcontrollerxis:
A) capitalxexpendituresxmanagement.
B) cashxmanagement.
C) taxxreporting.
D) financialxplanning.
E) creditxmanagement.
6) isxtypicallyxthexresponsibilityofxthexcorporatextreasurer.
A) Financialxplanning
B) Costxaccounting
C) Taxxreporting
D) Informationsystems
E) Financialaccounting
7) Axfirm’s define(s)xitsxcapitalxstructure.
Versionx1 3
, A) mixturexofxvariousxtypesxofxproductionxequipment
B) investmentxselectionsxforxitsxexcessxcashxreserves
C) combinationxofxcashxandxcashxequivalents
D) combinationxofxaccountsxappearingxonxthexleftxsidexofxitsxbalancexsheet
E) proportionsxofxfinancingxfromdebtxandxequity
8) Thexfocusxofxshort-termxfinancexisxon:
A) thextimingfofxcashxflows.
B) acquiringfandxsellingffixedxassets.
C) financingflong-termprojects.
D) capitalxbudgeting.
E) issuingxadditionalxsharesxofxcommonxstock.
9) Netxworkingxcapitalxincludes:
A) copyrights.
B) manufacturingxequipment.
C) commonxstock.
D) long-termxdebt.
E) inventory.
10) isxdefinedxasxplanningxandxmanagingxaxfirm’sxlong-termassets.
A) Workingfcapitalxmanagement
B) Cashxmanagement
C) Costxaccountingxmanagement
D) Capitalbudgeting
E) Capitalstructurexmanagement
11) Anxamountxthexfirmsxowes,xwhichxitxmustxrepaywithinxtwelvefmonths,xisxcalledxa(n):
Versionx1 4
Corporate Finance 13th Edition
x x x
By Stephen Ross, Randolph Westerfield,
x x x x
Chapters 1 - 21, Complete
x x x x x
Versionx1 1
,Chapter 1x
Student name:_
x x
MULTIPLExCHOICEx-
Choosexthexonexalternativexthatxbestxcompletesxthefstatementxorfanswersxthexquestion.
1) Generally,xamongxthosexwhoxreportxdirectlytoxthe
arexthextreasurerxandxthecontrollerxofxaxcorporation.
A) boardxofxdirectors
B) chairpersonxofxthexboard
C) chiefxexecutivexofficer
D) president
E) chiefxfinancialxofficer
2) Axtypicalxchainfofxcommandxinxaxcorporationxisxdescribedxbyxwhichxonexofxthexfollowingfstaxt
ements?
A) Thefinformationxsystemsxmanagerxreportsxtoxthextreasurer.
B) Thexcreditxmanagerfreportstoxthextreasurer.
C) Thexcontrollerfreportsxtoxthexchiefxexecutivexofficer.
D) Theftaxxmanagerfreportsxtoxthextreasurer.
E) Thexcapitalxexpendituresxmanagerxreportstoxthexcontroller.
3) Answeringxwhichxonexofxthexfollowingxquestionsxinvolvesxmakingxaxcapitalxbudgetingfdexc
ision?
Versionx1 2
, A) Howxmuchxdebtxshouldxthexfirmxborrowxfromxaxparticularxlender?
B) Shouldxthexfirmxbuildxaxnewxproductionxfacility?
C) Shouldxthexfirmxissuexnewxequitytoxpayforxitsxgrowthxgoals?
D) Howxmuchxinventoryshouldxthexfirmxkeepxonxhand?
E) Howxmuchxcreditxshouldfthexfirmextendxtoxafparticularxcustomer?
4) Whichxonexofxthexfollowingxstatementsxisxaccurate?
A) Netxworkingxcapitalequalsxcurrentxassetsxplusxcurrentxliabilities.
B) Currentxliabilitiesxarexdebtsxthatxmustxbefrepaidxinx18xmonthsxorfless.
C) Currentxassetsxarexassetsxwithxshortxlives,xsuchxasxaccountsxreceivable.
D) Long-termxdebtxisxdefinedxasxaxresidualxclaimxonxaxfirm’sxassets.
E) Tangiblexassetsxarexfixedxassetsxsuchxasxpatents.
5) Amongxtheftypicalxresponsibilitiesfofxthexcorporatefcontrollerxis:
A) capitalxexpendituresxmanagement.
B) cashxmanagement.
C) taxxreporting.
D) financialxplanning.
E) creditxmanagement.
6) isxtypicallyxthexresponsibilityofxthexcorporatextreasurer.
A) Financialxplanning
B) Costxaccounting
C) Taxxreporting
D) Informationsystems
E) Financialaccounting
7) Axfirm’s define(s)xitsxcapitalxstructure.
Versionx1 3
, A) mixturexofxvariousxtypesxofxproductionxequipment
B) investmentxselectionsxforxitsxexcessxcashxreserves
C) combinationxofxcashxandxcashxequivalents
D) combinationxofxaccountsxappearingxonxthexleftxsidexofxitsxbalancexsheet
E) proportionsxofxfinancingxfromdebtxandxequity
8) Thexfocusxofxshort-termxfinancexisxon:
A) thextimingfofxcashxflows.
B) acquiringfandxsellingffixedxassets.
C) financingflong-termprojects.
D) capitalxbudgeting.
E) issuingxadditionalxsharesxofxcommonxstock.
9) Netxworkingxcapitalxincludes:
A) copyrights.
B) manufacturingxequipment.
C) commonxstock.
D) long-termxdebt.
E) inventory.
10) isxdefinedxasxplanningxandxmanagingxaxfirm’sxlong-termassets.
A) Workingfcapitalxmanagement
B) Cashxmanagement
C) Costxaccountingxmanagement
D) Capitalbudgeting
E) Capitalstructurexmanagement
11) Anxamountxthexfirmsxowes,xwhichxitxmustxrepaywithinxtwelvefmonths,xisxcalledxa(n):
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