Test Bank for Corporate Finance
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Versionh2 1
1
,Chapterh21
Studenth2name:_h2
MULTIPLEh2CHOICEh2-
h2Chooseh2theh2oneh2alternativeh2thath2besth2completesh2theh2statementh2orh2answersh2theh2question.
1) Generally,h2amongh2thoseh2whoh2reporth2directlyh2toh2the
areh2theh2treasurerh2andh2theh2controllerh2ofh2ah2corporation.
A) boardh2ofh2directors
B) chairpersonh2ofh2theh2board
C) chiefh2executiveh2officer
D) president
E) chiefh2financialh2officer
2) Ah2typicalh2chainh2ofh2commandh2inh2ah2corporationh2ish2describedh2byh2whichh2oneh2ofh2theh2f
ollowingh2statements?
A) Theh2informationh2systemsh2managerh2reportsh2toh2theh2treasurer.
B) Theh2credith2managerh2reportsh2toh2theh2treasurer.
C) Theh2controllerh2reportsh2toh2theh2chiefh2executiveh2officer.
D) Theh2taxh2managerh2reportsh2toh2theh2treasurer.
E) Theh2capitalh2expendituresh2managerh2reportsh2toh2theh2controller.
3) Answeringh2whichh2oneh2ofh2theh2followingh2questionsh2involvesh2makingh2ah2capitalh2bu
dgetingh2decision?
Versionh2 2
1
, A) Howh2muchh2debth2shouldh2theh2firmh2borrowh2fromh2ah2particularh2lender?
B) Shouldh2theh2firmh2buildh2ah2newh2productionh2facility?
C) Shouldh2theh2firmh2issueh2newh2equityh2toh2payh2forh2itsh2growthh2goals?
D) Howh2muchh2inventoryh2shouldh2theh2firmh2keeph2onh2hand?
E) Howh2muchh2credith2shouldh2theh2firmh2extendh2toh2ah2particularh2customer?
4) Whichh2oneh2ofh2theh2followingh2statementsh2ish2accurate?
A) Neth2workingh2capitalh2equalsh2currenth2assetsh2plush2currenth2liabilities.
B) Currenth2liabilitiesh2areh2debtsh2thath2musth2beh2repaidh2inh218h2monthsh2orh2less.
C) Currenth2assetsh2areh2assetsh2withh2shorth2lives,h2suchh2ash2accountsh2receivable.
D) Long-termh2debth2ish2definedh2ash2ah2residualh2claimh2onh2ah2firm’sh2assets.
E) Tangibleh2assetsh2areh2fixedh2assetsh2suchh2ash2patents.
5) Amongh2theh2typicalh2responsibilitiesh2ofh2theh2corporateh2controllerh2is:
A) capitalh2expendituresh2management.
B) cashh2management.
C) taxh2reporting.
D) financialh2planning.
E) credith2management.
6) h2 ish2typicallyh2theh2responsibilityh2ofh2theh2corporateh2treasurer.
A) Financialh2planning
B) Costh2accounting
C) Taxh2reporting
D) Informationh2systems
E) Financialh2accounting
7) Ah2firm’s define(s)h2itsh2capitalh2structure.
Versionh2 3
1
, A) mixtureh2ofh2varioush2typesh2ofh2productionh2equipment
B) investmenth2selectionsh2forh2itsh2excessh2cashh2reserves
C) combinationh2ofh2cashh2andh2cashh2equivalents
D) combinationh2ofh2accountsh2appearingh2onh2theh2lefth2 sideh2ofh2itsh2balanceh2sheet
E) proportionsh2ofh2financingh2fromh2debth2andh2equity
8) Theh2focush2ofh2short-termh2financeh2ish2on:
A) theh2timingh2ofh2cashh2flows.
B) acquiringh2andh2sellingh2fixedh2assets.
C) financingh2long-termh2projects.
D) capitalh2budgeting.
E) issuingh2additionalh2sharesh2ofh2commonh2stock.
9) Neth2workingh2capitalh2includes:
A) copyrights.
B) manufacturingh2equipment.
C) commonh2stock.
D) long-termh2debt.
E) inventory.
10) h2 ish2definedh2ash2planningh2andh2managingh2ah2firm’sh2long-termh2assets.
A) Workingh2capitalh2management
B) Cashh2management
C) Costh2accountingh2management
D) Capitalh2budgeting
E) Capitalh2structureh2management
11) Anh2amounth2theh2firmsh2owes,h2whichh2ith2musth2repayh2withinh2twelveh2months,h2ish2calledh2a(n)
:
Versionh2 4
1
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Versionh2 1
1
,Chapterh21
Studenth2name:_h2
MULTIPLEh2CHOICEh2-
h2Chooseh2theh2oneh2alternativeh2thath2besth2completesh2theh2statementh2orh2answersh2theh2question.
1) Generally,h2amongh2thoseh2whoh2reporth2directlyh2toh2the
areh2theh2treasurerh2andh2theh2controllerh2ofh2ah2corporation.
A) boardh2ofh2directors
B) chairpersonh2ofh2theh2board
C) chiefh2executiveh2officer
D) president
E) chiefh2financialh2officer
2) Ah2typicalh2chainh2ofh2commandh2inh2ah2corporationh2ish2describedh2byh2whichh2oneh2ofh2theh2f
ollowingh2statements?
A) Theh2informationh2systemsh2managerh2reportsh2toh2theh2treasurer.
B) Theh2credith2managerh2reportsh2toh2theh2treasurer.
C) Theh2controllerh2reportsh2toh2theh2chiefh2executiveh2officer.
D) Theh2taxh2managerh2reportsh2toh2theh2treasurer.
E) Theh2capitalh2expendituresh2managerh2reportsh2toh2theh2controller.
3) Answeringh2whichh2oneh2ofh2theh2followingh2questionsh2involvesh2makingh2ah2capitalh2bu
dgetingh2decision?
Versionh2 2
1
, A) Howh2muchh2debth2shouldh2theh2firmh2borrowh2fromh2ah2particularh2lender?
B) Shouldh2theh2firmh2buildh2ah2newh2productionh2facility?
C) Shouldh2theh2firmh2issueh2newh2equityh2toh2payh2forh2itsh2growthh2goals?
D) Howh2muchh2inventoryh2shouldh2theh2firmh2keeph2onh2hand?
E) Howh2muchh2credith2shouldh2theh2firmh2extendh2toh2ah2particularh2customer?
4) Whichh2oneh2ofh2theh2followingh2statementsh2ish2accurate?
A) Neth2workingh2capitalh2equalsh2currenth2assetsh2plush2currenth2liabilities.
B) Currenth2liabilitiesh2areh2debtsh2thath2musth2beh2repaidh2inh218h2monthsh2orh2less.
C) Currenth2assetsh2areh2assetsh2withh2shorth2lives,h2suchh2ash2accountsh2receivable.
D) Long-termh2debth2ish2definedh2ash2ah2residualh2claimh2onh2ah2firm’sh2assets.
E) Tangibleh2assetsh2areh2fixedh2assetsh2suchh2ash2patents.
5) Amongh2theh2typicalh2responsibilitiesh2ofh2theh2corporateh2controllerh2is:
A) capitalh2expendituresh2management.
B) cashh2management.
C) taxh2reporting.
D) financialh2planning.
E) credith2management.
6) h2 ish2typicallyh2theh2responsibilityh2ofh2theh2corporateh2treasurer.
A) Financialh2planning
B) Costh2accounting
C) Taxh2reporting
D) Informationh2systems
E) Financialh2accounting
7) Ah2firm’s define(s)h2itsh2capitalh2structure.
Versionh2 3
1
, A) mixtureh2ofh2varioush2typesh2ofh2productionh2equipment
B) investmenth2selectionsh2forh2itsh2excessh2cashh2reserves
C) combinationh2ofh2cashh2andh2cashh2equivalents
D) combinationh2ofh2accountsh2appearingh2onh2theh2lefth2 sideh2ofh2itsh2balanceh2sheet
E) proportionsh2ofh2financingh2fromh2debth2andh2equity
8) Theh2focush2ofh2short-termh2financeh2ish2on:
A) theh2timingh2ofh2cashh2flows.
B) acquiringh2andh2sellingh2fixedh2assets.
C) financingh2long-termh2projects.
D) capitalh2budgeting.
E) issuingh2additionalh2sharesh2ofh2commonh2stock.
9) Neth2workingh2capitalh2includes:
A) copyrights.
B) manufacturingh2equipment.
C) commonh2stock.
D) long-termh2debt.
E) inventory.
10) h2 ish2definedh2ash2planningh2andh2managingh2ah2firm’sh2long-termh2assets.
A) Workingh2capitalh2management
B) Cashh2management
C) Costh2accountingh2management
D) Capitalh2budgeting
E) Capitalh2structureh2management
11) Anh2amounth2theh2firmsh2owes,h2whichh2ith2musth2repayh2withinh2twelveh2months,h2ish2calledh2a(n)
:
Versionh2 4
1
