TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Westerfield, Verified Chapters 1 - 31, Complete Newest Version

TEST BANK jo




Corporate Finance 13th Edition
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By Stephen Ross, Randolph Westerfield,
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Chapters 1 - 21, Complete
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Version 1
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,Chapter 1 jo




Studentname:_ jo jo




MULTIPLE CHOICE - jo jo



Choose the one alternative that best completes thefstatement orfanswers the question.
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1) Generally, among those who report directlyto the jo jo jo jo jo jo



are the treasurer and thecontroller of a corporation.
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A) board of directors jo jo



B) chairperson of the board jo jo jo



C) chief executive officer jo jo


D) president
E) chief financial officer jo jo




2) A typical chainfof command in a corporation is described by which one of the followingfsta te
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ments?

A) Thefinformation systems manager reports to the treasurer. jo jo jo jo jo jo


B) The credit managerfreportsto the treasurer.
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C) The controllerfreports to the chief executive officer.
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D) Theftax managerfreports to the treasurer.jo jo jo jo



E) The capital expenditures manager reportsto the controller.
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3) Answering which one of the following questions involves making a capital budgetingfde c
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ision?




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, A) How much debt should the firm borrow from a particular lender?
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B) Should the firm build a new production facility?
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C) Should the firm issue new equityto payfor its growth goals?
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D) How much inventoryshould the firm keep on hand?
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E) How much credit shouldfthe firmextend to afparticular customer?
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4) Which one of the following statements is accurate?
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A) Net working capitalequals current assets plus current liabilities.
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B) Current liabilities are debts that must befrepaid in 18 months orfless.
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C) Current assets are assets with short lives, such as accounts receivable.
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D) Long-term debt is defined as a residual claim on a firm’s assets.
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E) Tangible assets are fixed assets such as patents. jo jo jo jo jo jo jo




5) Among theftypical responsibilitiesfof the corporatefcontroller is:
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A) capital expenditures management. jo jo



B) cash management. jo


C) tax reporting.
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D) financial planning. jo


E) credit management. jo




6) is typically the responsibilityof the corporate treasurer.
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A) Financial planning jo


B) Cost accounting jo



C) Tax reporting
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D) Informationsystems
E) Financialaccounting



7) A firm’s
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, A) mixture of various types of production equipment
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B) investment selections for its excess cash reserves
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C) combination of cash and cash equivalents jo jo jo jo jo


D) combination of accounts appearing on the left side of its balance sheet
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E) proportions of financing fromdebt and equity jo jo jo jo jo




8) The focus of short-term finance is on:
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A) the timingfof cash flows.
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B) acquiringfand sellingffixed assets. jo jo



C) financingflong-termprojects.
D) capital budgeting. jo



E) issuing additional shares of common stock.
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9) Net working capital includes:
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A) copyrights.
B) manufacturing equipment. jo


C) common stock. jo



D) long-term debt. jo



E) inventory.



10) is defined as planning and managing a firm’s long-termassets.
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A) Workingfcapital management jo



B) Cash management
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C) Cost accounting management
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D) Capitalbudgeting
E) Capitalstructure management jo




11) An amount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
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