Test Bank for 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, oamong othose owho oreport odirectly oto othe are othe otreasurer oand
otheocontroller oof oa ocorporation.
A) board oof odirectors
B) chairperson oof othe oboard
C) chief oexecutive oofficer
D) president
E) chief ofinancial oofficer
2) A otypical ochain oof ocommand oin oa ocorporation ois odescribed oby owhich oone oof othe
ofollowingostatements?
A) The oinformation osystems omanager oreports oto othe otreasurer.
B) The ocredit omanager oreports oto othe otreasurer.
C) The ocontroller oreports oto othe ochief oexecutive oofficer.
D) The otax omanager oreports oto othe otreasurer.
E) The ocapital oexpenditures omanager oreports oto othe ocontroller.
3) Answering owhich oone oof othe ofollowing oquestions oinvolves omaking oa ocapital
obudgetingodecision?
Version 1 2
, A) How omuch odebt oshould othe ofirm oborrow ofrom oa oparticular olender?
B) Should othe ofirm obuild oa onew oproduction ofacility?
C) Should othe ofirm oissue onew oequity oto opay ofor oits ogrowth ogoals?
D) How omuch oinventory oshould othe ofirm okeep oon ohand?
E) How omuch ocredit oshould othe ofirm oextend oto oa oparticular ocustomer?
4) Which oone oof othe ofollowing ostatements ois oaccurate?
A) Net oworking ocapital oequals ocurrent oassets oplus ocurrent oliabilities.
B) Current oliabilities oare odebts othat omust obe orepaid oin o18 omonths oor oless.
C) Current oassets oare oassets owith oshort olives, osuch oas oaccounts oreceivable.
D) Long-term odebt ois odefined oas oa oresidual oclaim oon oa ofirm’s oassets.
E) Tangible oassets oare ofixed oassets osuch oas opatents.
5) Among othe otypical oresponsibilities oof othe ocorporate ocontroller ois:
A) capital oexpenditures omanagement.
B) cash omanagement.
C) tax oreporting.
D) financial oplanning.
E) credit omanagement.
6) o is otypically othe oresponsibility oof othe ocorporate otreasurer.
A) Financial oplanning
B) Cost oaccounting
C) Tax oreporting
D) Information osystems
E) Financial oaccounting
7) A ofirm’s define(s) oits ocapital ostructure.
Version 1 3
, A) mixture oof ovarious otypes oof oproduction oequipment
B) investment oselections ofor oits oexcess ocash oreserves
C) combination oof ocash oand ocash oequivalents
D) combination oof oaccounts oappearing oon othe oleft oside oof oits obalance osheet
E) proportions oof ofinancing ofrom odebt oand oequity
8) The ofocus oof oshort-term ofinance ois oon:
A) the otiming oof ocash oflows.
B) acquiring oand oselling ofixed oassets.
C) financing olong-term oprojects.
D) capital obudgeting.
E) issuing oadditional oshares oof ocommon ostock.
9) Net oworking ocapital oincludes:
A) copyrights.
B) manufacturing oequipment.
C) common ostock.
D) long-term odebt.
E) inventory.
10) o is odefined oas oplanning oand omanaging oa ofirm’s olong-term oassets.
A) Working ocapital omanagement
B) Cash omanagement
C) Cost oaccounting omanagement
D) Capital obudgeting
E) Capital ostructure omanagement
11) An oamount othe ofirms oowes, owhich oit omust orepay owithin otwelve omonths, ois ocalled
oa(n):
Version 1 4
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, oamong othose owho oreport odirectly oto othe are othe otreasurer oand
otheocontroller oof oa ocorporation.
A) board oof odirectors
B) chairperson oof othe oboard
C) chief oexecutive oofficer
D) president
E) chief ofinancial oofficer
2) A otypical ochain oof ocommand oin oa ocorporation ois odescribed oby owhich oone oof othe
ofollowingostatements?
A) The oinformation osystems omanager oreports oto othe otreasurer.
B) The ocredit omanager oreports oto othe otreasurer.
C) The ocontroller oreports oto othe ochief oexecutive oofficer.
D) The otax omanager oreports oto othe otreasurer.
E) The ocapital oexpenditures omanager oreports oto othe ocontroller.
3) Answering owhich oone oof othe ofollowing oquestions oinvolves omaking oa ocapital
obudgetingodecision?
Version 1 2
, A) How omuch odebt oshould othe ofirm oborrow ofrom oa oparticular olender?
B) Should othe ofirm obuild oa onew oproduction ofacility?
C) Should othe ofirm oissue onew oequity oto opay ofor oits ogrowth ogoals?
D) How omuch oinventory oshould othe ofirm okeep oon ohand?
E) How omuch ocredit oshould othe ofirm oextend oto oa oparticular ocustomer?
4) Which oone oof othe ofollowing ostatements ois oaccurate?
A) Net oworking ocapital oequals ocurrent oassets oplus ocurrent oliabilities.
B) Current oliabilities oare odebts othat omust obe orepaid oin o18 omonths oor oless.
C) Current oassets oare oassets owith oshort olives, osuch oas oaccounts oreceivable.
D) Long-term odebt ois odefined oas oa oresidual oclaim oon oa ofirm’s oassets.
E) Tangible oassets oare ofixed oassets osuch oas opatents.
5) Among othe otypical oresponsibilities oof othe ocorporate ocontroller ois:
A) capital oexpenditures omanagement.
B) cash omanagement.
C) tax oreporting.
D) financial oplanning.
E) credit omanagement.
6) o is otypically othe oresponsibility oof othe ocorporate otreasurer.
A) Financial oplanning
B) Cost oaccounting
C) Tax oreporting
D) Information osystems
E) Financial oaccounting
7) A ofirm’s define(s) oits ocapital ostructure.
Version 1 3
, A) mixture oof ovarious otypes oof oproduction oequipment
B) investment oselections ofor oits oexcess ocash oreserves
C) combination oof ocash oand ocash oequivalents
D) combination oof oaccounts oappearing oon othe oleft oside oof oits obalance osheet
E) proportions oof ofinancing ofrom odebt oand oequity
8) The ofocus oof oshort-term ofinance ois oon:
A) the otiming oof ocash oflows.
B) acquiring oand oselling ofixed oassets.
C) financing olong-term oprojects.
D) capital obudgeting.
E) issuing oadditional oshares oof ocommon ostock.
9) Net oworking ocapital oincludes:
A) copyrights.
B) manufacturing oequipment.
C) common ostock.
D) long-term odebt.
E) inventory.
10) o is odefined oas oplanning oand omanaging oa ofirm’s olong-term oassets.
A) Working ocapital omanagement
B) Cash omanagement
C) Cost oaccounting omanagement
D) Capital obudgeting
E) Capital ostructure omanagement
11) An oamount othe ofirms oowes, owhich oit omust orepay owithin otwelve omonths, ois ocalled
oa(n):
Version 1 4
