Test Bank for Corporate Finance 13th Edition By Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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,TEST BANK FOR
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Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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Chapter 1 c




Student name:
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MULTIPLE CHOICE - Choose the one alternative that best completes the statement or answers
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the question.
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1) Generally, among those who report directly to the
c are the treasurer and the
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controller of a corporation.
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A) board of directors c c


B) chairperson of the board c c c



C) chief executive officer
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D) president
E) chief financial officer
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2) A typical chain of command in a corporation is described by which one of the following
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statements?
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A) The information systems manager reports to the treasurer.
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B) The credit manager reports to the treasurer.
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C) The controller reports to the chief executive officer.
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D) The tax manager reports to the treasurer.
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E) The capital expenditures manager reports to the controller.
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3) Answering which one of the following questions involves making a capital budgeting
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decision?
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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 equity to pay for its growth goals?
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D) How much inventory should the firm keep on hand?
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E) How much credit should the firm extend to a particular customer?
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4) Which one of the following statements is accurate?
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A) Net working capital equals current assets plus current liabilities.
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B) Current liabilities are debts that must be repaid in 18 months or less.
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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.
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5) Among the typical responsibilities of the corporate controller is:
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A) capital expenditures management.
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B) cash management.
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C) tax reporting.
c



D) financial planning. c



E) credit management. c




6) is typically the responsibility of the corporate treasurer.
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A) Financial planning c



B) Cost accounting
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C) Tax reporting
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D) Information systems c



E) Financial accounting c




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 c c c c c



D) combination of accounts appearing on the left side of its balance sheet
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E) proportions of financing from debt and equity c c c c c c




8) The focus of short-term finance is on:
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A) the timing of cash flows.
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B) acquiring and selling fixed assets.c c c c



C) financing long-term projects. c c


D) capital budgeting. c



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. c



C) common stock. c



D) long-term debt. c



E) inventory.



10) is defined as planning and managing a firm’s long-term assets.
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A) Working capital management c c



B) Cash management
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C) Cost accounting management
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D) Capital budgeting c



E) Capital structure management
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11) An amount the firms owes, which it must repay within twelve months, is called a(n):
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