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 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) How40much40debt40should40the40firm40borrow40from40a40particular40lender?
B) Should40the40firm40build40a40new40production40facility?
C) Should40the40firm40issue40new40equity40to40pay40for40its40growth40goals?
D) How40much40inventory40should40the40firm40keep40on40hand?
E) How40much40credit40should40the40firm40extend40to40a40particular40customer?
4) Which40one40of40the40following40statements40is40accurate?
A) Net40working40capital40equals40current40assets40plus40current40liabilities.
B) Current40liabilities40are40debts40that40must40be40repaid40in401840months40or40less.
C) Current40assets40are40assets40with40short40lives,40such40as40accounts40receivable.
D) Long-term40debt40is40defined40as40a40residual40claim40on40a40firm’s40assets.
E) Tangible40assets40are40fixed40assets40such40as40patents.
5) Among40the40typical40responsibilities40of40the40corporate40controller40is:
A) capital40expenditures40management.
B) cash40management.
C) tax40reporting.
D) financial40planning.
E) credit40management.
6) 40 is40typically40the40responsibility40of40the40corporate40treasurer.
A) Financial40planning
B) Cost40accounting
C) Tax40reporting
D) Information40systems
E) Financial40accounting
7) A40firm’s define(s)40its40capital40structure.
Version40 3
1
, A) mixture40of40various40types40of40production40equipment
B) investment40selections40for40its40excess40cash40reserves
C) combination40of40cash40and40cash40equivalents
D) combination40of40accounts40appearing40on40the40left40side40of40its40balance40sheet
E) proportions40of40financing40from40debt40and40equity
8) The40focus40of40short-term40finance40is40on:
A) the40timing40of40cash40flows.
B) acquiring40and40selling40fixed40assets.
C) financing40long-term40projects.
D) capital40budgeting.
E) issuing40additional40shares40of40common40stock.
9) Net40working40capital40includes:
A) copyrights.
B) manufacturing40equipment.
C) common40stock.
D) long-term40debt.
E) inventory.
10) 40 is40defined40as40planning40and40managing40a40firm’s40long-term40assets.
A) Working40capital40management
B) Cash40management
C) Cost40accounting40management
D) Capital40budgeting
E) Capital40structure40management
11) An40amount40the40firms40owes,40which40it40must40repay40within40twelve40months,40is40called
40a(n):
Version40 4
1
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) How40much40debt40should40the40firm40borrow40from40a40particular40lender?
B) Should40the40firm40build40a40new40production40facility?
C) Should40the40firm40issue40new40equity40to40pay40for40its40growth40goals?
D) How40much40inventory40should40the40firm40keep40on40hand?
E) How40much40credit40should40the40firm40extend40to40a40particular40customer?
4) Which40one40of40the40following40statements40is40accurate?
A) Net40working40capital40equals40current40assets40plus40current40liabilities.
B) Current40liabilities40are40debts40that40must40be40repaid40in401840months40or40less.
C) Current40assets40are40assets40with40short40lives,40such40as40accounts40receivable.
D) Long-term40debt40is40defined40as40a40residual40claim40on40a40firm’s40assets.
E) Tangible40assets40are40fixed40assets40such40as40patents.
5) Among40the40typical40responsibilities40of40the40corporate40controller40is:
A) capital40expenditures40management.
B) cash40management.
C) tax40reporting.
D) financial40planning.
E) credit40management.
6) 40 is40typically40the40responsibility40of40the40corporate40treasurer.
A) Financial40planning
B) Cost40accounting
C) Tax40reporting
D) Information40systems
E) Financial40accounting
7) A40firm’s define(s)40its40capital40structure.
Version40 3
1
, A) mixture40of40various40types40of40production40equipment
B) investment40selections40for40its40excess40cash40reserves
C) combination40of40cash40and40cash40equivalents
D) combination40of40accounts40appearing40on40the40left40side40of40its40balance40sheet
E) proportions40of40financing40from40debt40and40equity
8) The40focus40of40short-term40finance40is40on:
A) the40timing40of40cash40flows.
B) acquiring40and40selling40fixed40assets.
C) financing40long-term40projects.
D) capital40budgeting.
E) issuing40additional40shares40of40common40stock.
9) Net40working40capital40includes:
A) copyrights.
B) manufacturing40equipment.
C) common40stock.
D) long-term40debt.
E) inventory.
10) 40 is40defined40as40planning40and40managing40a40firm’s40long-term40assets.
A) Working40capital40management
B) Cash40management
C) Cost40accounting40management
D) Capital40budgeting
E) Capital40structure40management
11) An40amount40the40firms40owes,40which40it40must40repay40within40twelve40months,40is40called
40a(n):
Version40 4
1
