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Fundamentals of Corporate Finance, 13th Edition Ross z z z z z z
Chapter 1-27 Answers are at the end of Each chapter
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Chapter 1
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Student name: z
The controller, rather than the treasurer, is typically responsible for which one of the
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following functions?
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1) z
Depositing cash receipts z z
Processing cost reports z z
Analyzing equipment purchases z z
Approving credit for a customer z z z z
Paying a vendor z z
Question Details z
Accessibility : Keyboard Navigation z z z
Accessibility : Screen Reader Compatible
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Difficulty : 1 Basic
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Management organization and roles
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AACSB : Reflective Thinking
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Bloom's : Remember z z
Usually, the treasurer of a corporation reports directly to the:
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2) z
Version 1 z 1
, board of directors. z z
chair of the board. z z z
chief executive officer. z z
president.
vice president of finance.
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Difficulty : 1 Basic
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Management organization and roles
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AACSB : Reflective Thinking
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Bloom's : Rememberz z
In a typical corporate organizational structure:
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the vice president of finance reports to the chair of the board.
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the chief executive officer reports to the president.
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the controller reports to the chief financial officer.
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the treasurer reports to the president.
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the chief operations officer reports to the vice president of production.
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Difficulty : 1 Basic
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Management organization and roles
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AACSB : Reflective Thinking
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Bloom's : Rememberz z
Version 1 z 2
,Which one of the following questions involves a capital budgeting decision?
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4) z
How many shares of stock should the firm issue?
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Should the firm purchase a new machine for the production line?
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Should the firm borrow money to acquire new equipment?
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How much inventory should the firm keep on hand?
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How much money should be kept in the checking account?
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Bloom's : Understand
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Financial management decisions
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Difficulty : 2 Intermediate
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AACSB : Reflective Thinking
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When evaluating the timing of a project’s projected cash flows, a financial manager is
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analyzing:
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the amount of each expected cash flow.
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only the start-up costs that are expected to require cash resources.
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only the date of the final cash flow related to the project.
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the amount by which cash receipts are expected to exceed cash outflows.
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when each cash flow is expected to occur.
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Version 1 z 3
, Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Bloom's : Understand
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Financial management decisions
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Difficulty : 2 Intermediate
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AACSB : Reflective Thinking
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Which one of the following questions involves a capital structure decision?
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6) z
Which one of two project proposals should the firm implement?
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How should the firm allocate its limited available funds among acceptable projects?
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How much funding should be allocated to financing customer purchases of a new
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product?
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How much debt should the firm incur to fund a project?
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How much inventory will be needed to support a project?
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Bloom's : Understand
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Financial management decisions
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Difficulty : 2 Intermediate
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AACSB : Reflective Thinking
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Determining the number of shares of stock to issue is an example of a
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7) z
Version 1 z 4
Fundamentals of Corporate Finance, 13th Edition Ross z z z z z z
Chapter 1-27 Answers are at the end of Each chapter
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Chapter 1
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Student name: z
The controller, rather than the treasurer, is typically responsible for which one of the
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following functions?
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1) z
Depositing cash receipts z z
Processing cost reports z z
Analyzing equipment purchases z z
Approving credit for a customer z z z z
Paying a vendor z z
Question Details z
Accessibility : Keyboard Navigation z z z
Accessibility : Screen Reader Compatible
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Difficulty : 1 Basic
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Management organization and roles
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AACSB : Reflective Thinking
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Bloom's : Remember z z
Usually, the treasurer of a corporation reports directly to the:
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2) z
Version 1 z 1
, board of directors. z z
chair of the board. z z z
chief executive officer. z z
president.
vice president of finance.
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Difficulty : 1 Basic
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Management organization and roles
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AACSB : Reflective Thinking
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Bloom's : Rememberz z
In a typical corporate organizational structure:
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3) z
the vice president of finance reports to the chair of the board.
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the chief executive officer reports to the president.
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the controller reports to the chief financial officer.
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the treasurer reports to the president.
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the chief operations officer reports to the vice president of production.
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Difficulty : 1 Basic
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Management organization and roles
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AACSB : Reflective Thinking
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Bloom's : Rememberz z
Version 1 z 2
,Which one of the following questions involves a capital budgeting decision?
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4) z
How many shares of stock should the firm issue?
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Should the firm purchase a new machine for the production line?
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Should the firm borrow money to acquire new equipment?
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How much inventory should the firm keep on hand?
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How much money should be kept in the checking account?
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Bloom's : Understand
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Financial management decisions
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Difficulty : 2 Intermediate
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AACSB : Reflective Thinking
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When evaluating the timing of a project’s projected cash flows, a financial manager is
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analyzing:
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5) z
the amount of each expected cash flow.
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only the start-up costs that are expected to require cash resources.
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only the date of the final cash flow related to the project.
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the amount by which cash receipts are expected to exceed cash outflows.
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when each cash flow is expected to occur.
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Version 1 z 3
, Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Bloom's : Understand
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Financial management decisions
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Difficulty : 2 Intermediate
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AACSB : Reflective Thinking
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Which one of the following questions involves a capital structure decision?
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6) z
Which one of two project proposals should the firm implement?
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How should the firm allocate its limited available funds among acceptable projects?
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How much funding should be allocated to financing customer purchases of a new
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product?
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How much debt should the firm incur to fund a project?
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How much inventory will be needed to support a project?
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Question Details z
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
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Bloom's : Understand
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Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
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Section : 1.1 Finance: A Quick Look
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Topic : Financial management decisions
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Difficulty : 2 Intermediate
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AACSB : Reflective Thinking
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Determining the number of shares of stock to issue is an example of a
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7) z
Version 1 z 4
