Version v1 1
,TEST BANK FOR
v v
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
v v v v v v v v
Chapter 1 v
Student name:
v
MULTIPLE vCHOICE v- vChoose vthe vone valternative vthat vbest vcompletes vthe vstatement vor
vanswers vthe vquestion.
1) Generally, vamong vthose vwho vreport vdirectly vto vthe v are vthe vtreasurer vand vthe
vcontroller vof va vcorporation.
A) board vof vdirectors
B) chairperson vof vthe vboard
C) chief vexecutive vofficer
D) president
E) chief vfinancial vofficer
2) A vtypical vchain vof vcommand vin va vcorporation vis vdescribed vby vwhich vone vof vthe
vfollowing vstatements?
A) The vinformation vsystems vmanager vreports vto vthe vtreasurer.
B) The vcredit vmanager vreports vto vthe vtreasurer.
C) The vcontroller vreports vto vthe vchief vexecutive vofficer.
D) The vtax vmanager vreports vto vthe vtreasurer.
E) The vcapital vexpenditures vmanager vreports vto vthe vcontroller.
3) Answering vwhich vone vof vthe vfollowing vquestions vinvolves vmaking va vcapital
vbudgeting vdecision?
Version v1 2
, A) How vmuch vdebt vshould vthe vfirm vborrow vfrom va vparticular vlender?
B) Should vthe vfirm vbuild va vnew vproduction vfacility?
C) Should vthe vfirm vissue vnew vequity vto vpay vfor vits vgrowth vgoals?
D) How vmuch vinventory vshould vthe vfirm vkeep von vhand?
E) How vmuch vcredit vshould vthe vfirm vextend vto va vparticular vcustomer?
4) Which vone vof vthe vfollowing vstatements vis vaccurate?
A) Net vworking vcapital vequals vcurrent vassets vplus vcurrent vliabilities.
B) Current vliabilities vare vdebts vthat vmust vbe vrepaid vin v18 vmonths vor vless.
C) Current vassets vare vassets vwith vshort vlives, vsuch vas vaccounts vreceivable.
D) Long-term vdebt vis vdefined vas va vresidual vclaim von va vfirm’s vassets.
E) Tangible vassets vare vfixed vassets vsuch vas vpatents.
5) Among vthe vtypical vresponsibilities vof vthe vcorporate vcontroller vis:
A) capital vexpenditures vmanagement.
B) cash vmanagement.
C) tax vreporting.
D) financial vplanning.
E) credit vmanagement.
6) is vtypically vthe vresponsibility vof vthe vcorporate vtreasurer.
A) Financial vplanning
B) Cost vaccounting
C) Tax vreporting
D) Information vsystems
E) Financial vaccounting
7) A vfirm’s v define(s) vits vcapital vstructure.
Version v1 3
, A) mixture vof vvarious vtypes vof vproduction vequipment
B) investment vselections vfor vits vexcess vcash vreserves
C) combination vof vcash vand vcash vequivalents
D) combination vof vaccounts vappearing von vthe vleft vside vof vits vbalance vsheet
E) proportions vof vfinancing vfrom vdebt vand vequity
8) The vfocus vof vshort-term vfinance vis von:
A) the vtiming vof vcash vflows.
B) acquiring vand vselling vfixed vassets.
C) financing vlong-term vprojects.
D) capital vbudgeting.
E) issuing vadditional vshares vof vcommon vstock.
9) Net vworking vcapital vincludes:
A) copyrights.
B) manufacturing vequipment.
C) common vstock.
D) long-term vdebt.
E) inventory.
10) is vdefined vas vplanning vand vmanaging va vfirm’s vlong-term vassets.
A) Working vcapital vmanagement
B) Cash vmanagement
C) Cost vaccounting vmanagement
D) Capital vbudgeting
E) Capital vstructure vmanagement
11) An vamount vthe vfirms vowes, vwhich vit vmust vrepay vwithin vtwelve vmonths, vis vcalled va(n):
Version v1 4
,TEST BANK FOR
v v
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
v v v v v v v v
Chapter 1 v
Student name:
v
MULTIPLE vCHOICE v- vChoose vthe vone valternative vthat vbest vcompletes vthe vstatement vor
vanswers vthe vquestion.
1) Generally, vamong vthose vwho vreport vdirectly vto vthe v are vthe vtreasurer vand vthe
vcontroller vof va vcorporation.
A) board vof vdirectors
B) chairperson vof vthe vboard
C) chief vexecutive vofficer
D) president
E) chief vfinancial vofficer
2) A vtypical vchain vof vcommand vin va vcorporation vis vdescribed vby vwhich vone vof vthe
vfollowing vstatements?
A) The vinformation vsystems vmanager vreports vto vthe vtreasurer.
B) The vcredit vmanager vreports vto vthe vtreasurer.
C) The vcontroller vreports vto vthe vchief vexecutive vofficer.
D) The vtax vmanager vreports vto vthe vtreasurer.
E) The vcapital vexpenditures vmanager vreports vto vthe vcontroller.
3) Answering vwhich vone vof vthe vfollowing vquestions vinvolves vmaking va vcapital
vbudgeting vdecision?
Version v1 2
, A) How vmuch vdebt vshould vthe vfirm vborrow vfrom va vparticular vlender?
B) Should vthe vfirm vbuild va vnew vproduction vfacility?
C) Should vthe vfirm vissue vnew vequity vto vpay vfor vits vgrowth vgoals?
D) How vmuch vinventory vshould vthe vfirm vkeep von vhand?
E) How vmuch vcredit vshould vthe vfirm vextend vto va vparticular vcustomer?
4) Which vone vof vthe vfollowing vstatements vis vaccurate?
A) Net vworking vcapital vequals vcurrent vassets vplus vcurrent vliabilities.
B) Current vliabilities vare vdebts vthat vmust vbe vrepaid vin v18 vmonths vor vless.
C) Current vassets vare vassets vwith vshort vlives, vsuch vas vaccounts vreceivable.
D) Long-term vdebt vis vdefined vas va vresidual vclaim von va vfirm’s vassets.
E) Tangible vassets vare vfixed vassets vsuch vas vpatents.
5) Among vthe vtypical vresponsibilities vof vthe vcorporate vcontroller vis:
A) capital vexpenditures vmanagement.
B) cash vmanagement.
C) tax vreporting.
D) financial vplanning.
E) credit vmanagement.
6) is vtypically vthe vresponsibility vof vthe vcorporate vtreasurer.
A) Financial vplanning
B) Cost vaccounting
C) Tax vreporting
D) Information vsystems
E) Financial vaccounting
7) A vfirm’s v define(s) vits vcapital vstructure.
Version v1 3
, A) mixture vof vvarious vtypes vof vproduction vequipment
B) investment vselections vfor vits vexcess vcash vreserves
C) combination vof vcash vand vcash vequivalents
D) combination vof vaccounts vappearing von vthe vleft vside vof vits vbalance vsheet
E) proportions vof vfinancing vfrom vdebt vand vequity
8) The vfocus vof vshort-term vfinance vis von:
A) the vtiming vof vcash vflows.
B) acquiring vand vselling vfixed vassets.
C) financing vlong-term vprojects.
D) capital vbudgeting.
E) issuing vadditional vshares vof vcommon vstock.
9) Net vworking vcapital vincludes:
A) copyrights.
B) manufacturing vequipment.
C) common vstock.
D) long-term vdebt.
E) inventory.
10) is vdefined vas vplanning vand vmanaging va vfirm’s vlong-term vassets.
A) Working vcapital vmanagement
B) Cash vmanagement
C) Cost vaccounting vmanagement
D) Capital vbudgeting
E) Capital vstructure vmanagement
11) An vamount vthe vfirms vowes, vwhich vit vmust vrepay vwithin vtwelve vmonths, vis vcalled va(n):
Version v1 4
