TEST BANK #
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#thefstatement#orfanswers#the#question.
1) Generally,#among#those#who#report#directlyto#the
are#the#treasurer#and#thecontroller#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#chainfof#command#in#a#corporation#is#described#by#which#one#of#the#followingfsta#t
ements?
A) Thefinformation#systems#manager#reports#to#the#treasurer.
B) The#credit#managerfreportsto#the#treasurer.
C) The#controllerfreports#to#the#chief#executive#officer.
D) Theftax#managerfreports#to#the#treasurer.
E) The#capital#expenditures#manager#reportsto#the#controller.
3) Answering#which#one#of#the#following#questions#involves#making#a#capital#budgetingfde#c
ision?
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#equityto#payfor#its#growth#goals?
D) How#much#inventoryshould#the#firm#keep#on#hand?
E) How#much#credit#shouldfthe#firmextend#to#afparticular#customer?
4) Which#one#of#the#following#statements#is#accurate?
A) Net#working#capitalequals#current#assets#plus#current#liabilities.
B) Current#liabilities#are#debts#that#must#befrepaid#in#18#months#orfless.
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#theftypical#responsibilitiesfof#the#corporatefcontroller#is:
A) capital#expenditures#management.
B) cash#management.
C) tax#reporting.
D) financial#planning.
E) credit#management.
6) is#typically#the#responsibilityof#the#corporate#treasurer.
A) Financial#planning
B) Cost#accounting
C) Tax#reporting
D) Informationsystems
E) Financialaccounting
7) A#firm’s define(s)#its#capital#structure.
Version#1 3
, A) mixture#of#various#types#of#production#equipment
B) investment#selections#for#its#excess#cash#reserves
C) combination#of#cash#and#cash#equivalents
D) combination#of#accounts#appearing#on#the#left#side#of#its#balance#sheet
E) proportions#of#financing#fromdebt#and#equity
8) The#focus#of#short-term#finance#is#on:
A) the#timingfof#cash#flows.
B) acquiringfand#sellingffixed#assets.
C) financingflong-termprojects.
D) capital#budgeting.
E) issuing#additional#shares#of#common#stock.
9) Net#working#capital#includes:
A) copyrights.
B) manufacturing#equipment.
C) common#stock.
D) long-term#debt.
E) inventory.
10) is#defined#as#planning#and#managing#a#firm’s#long-termassets.
A) Workingfcapital#management
B) Cash#management
C) Cost#accounting#management
D) Capitalbudgeting
E) Capitalstructure#management
11) An#amount#the#firms#owes,#which#it#must#repaywithin#twelvefmonths,#is#called#a(n):
Version#1 4
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#thefstatement#orfanswers#the#question.
1) Generally,#among#those#who#report#directlyto#the
are#the#treasurer#and#thecontroller#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#chainfof#command#in#a#corporation#is#described#by#which#one#of#the#followingfsta#t
ements?
A) Thefinformation#systems#manager#reports#to#the#treasurer.
B) The#credit#managerfreportsto#the#treasurer.
C) The#controllerfreports#to#the#chief#executive#officer.
D) Theftax#managerfreports#to#the#treasurer.
E) The#capital#expenditures#manager#reportsto#the#controller.
3) Answering#which#one#of#the#following#questions#involves#making#a#capital#budgetingfde#c
ision?
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#equityto#payfor#its#growth#goals?
D) How#much#inventoryshould#the#firm#keep#on#hand?
E) How#much#credit#shouldfthe#firmextend#to#afparticular#customer?
4) Which#one#of#the#following#statements#is#accurate?
A) Net#working#capitalequals#current#assets#plus#current#liabilities.
B) Current#liabilities#are#debts#that#must#befrepaid#in#18#months#orfless.
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#theftypical#responsibilitiesfof#the#corporatefcontroller#is:
A) capital#expenditures#management.
B) cash#management.
C) tax#reporting.
D) financial#planning.
E) credit#management.
6) is#typically#the#responsibilityof#the#corporate#treasurer.
A) Financial#planning
B) Cost#accounting
C) Tax#reporting
D) Informationsystems
E) Financialaccounting
7) A#firm’s define(s)#its#capital#structure.
Version#1 3
, A) mixture#of#various#types#of#production#equipment
B) investment#selections#for#its#excess#cash#reserves
C) combination#of#cash#and#cash#equivalents
D) combination#of#accounts#appearing#on#the#left#side#of#its#balance#sheet
E) proportions#of#financing#fromdebt#and#equity
8) The#focus#of#short-term#finance#is#on:
A) the#timingfof#cash#flows.
B) acquiringfand#sellingffixed#assets.
C) financingflong-termprojects.
D) capital#budgeting.
E) issuing#additional#shares#of#common#stock.
9) Net#working#capital#includes:
A) copyrights.
B) manufacturing#equipment.
C) common#stock.
D) long-term#debt.
E) inventory.
10) is#defined#as#planning#and#managing#a#firm’s#long-termassets.
A) Workingfcapital#management
B) Cash#management
C) Cost#accounting#management
D) Capitalbudgeting
E) Capitalstructure#management
11) An#amount#the#firms#owes,#which#it#must#repaywithin#twelvefmonths,#is#called#a(n):
Version#1 4
