Corporate Finance, 13th Edition by Stephen Ross, Randolph Westerfield & Jeffrey Jaffe – Complete Test Bank

Test Bank
for Corporate Finance 13th Edition Stephen Ross, Randolph Westerfield,
Jeffrey Jaffe Completely Updated!!!!




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***WICKYAPLUS STUVIA***

,TEST BANK FOR
x x




Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
x x x x x x x x




Chapter 1 x




Student name:
x




MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
x x x x x x x x x x x x



answers the question.
x x x


1) Generally, among those who report directly to the
x are the treasurer and the
x x x x x x x x x x x


controller of a corporation.
x x x x




A) board of directors x x



B) chairperson of the board x x x



C) chief executive officer
x x



D) president
E) chief financial officer
x x




2) A typical chain of command in a corporation is described by which one of the following
x x x x x x x x x x x x x x x



statements?
x




A) The information systems manager reports to the treasurer.
x x x x x x x


B) The credit manager reports to the treasurer.
x x x x x x



C) The controller reports to the chief executive officer.
x x x x x x x


D) The tax manager reports to the treasurer.
x x x x x x



E) The capital expenditures manager reports to the controller.
x x x x x x x




3) Answering which one of the following questions involves making a capital budgeting
x x x x x x x x x x x



decision?
x




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, A) How much debt should the firm borrow from a particular lender?
x x x x x x x x x x



B) Should the firm build a new production facility?
x x x x x x x



C) Should the firm issue new equity to pay for its growth goals?
x x x x x x x x x x x



D) How much inventory should the firm keep on hand?
x x x x x x x x



E) How much credit should the firm extend to a particular customer?
x x x x x x x x x x




4) Which one of the following statements is accurate?
x x x x x x x




A) Net working capital equals current assets plus current liabilities.
x x x x x x x x



B) Current liabilities are debts that must be repaid in 18 months or less.
x x x x x x x x x x x x


C) Current assets are assets with short lives, such as accounts receivable.
x x x x x x x x x x



D) Long-term debt is defined as a residual claim on a firm’s assets.
x x x x x x x x x x x



E) Tangible assets are fixed assets such as patents.
x x x x x x x




5) Among the typical responsibilities of the corporate controller is:
x x x x x x x x




A) capital expenditures management.
x x



B) cash management.
x



C) tax reporting.
x


D) financial planning. x



E) credit management. x




6) is typically the responsibility of the corporate treasurer.
x x x x x x x




A) Financial planning x



B) Cost accounting
x



C) Tax reporting
x



D) Information systems x



E) Financial accounting x




7) A firm’s
x x define(s) its capital structure. x x x




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, A) mixture of various types of production equipment
x x x x x x



B) investment selections for its excess cash reserves
x x x x x x



C) combination of cash and cash equivalents x x x x x



D) combination of accounts appearing on the left side of its balance sheet
x x x x x x x x x x x



E) proportions of financing from debt and equity
x x x x x x




8) The focus of short-term finance is on:
x x x x x x




A) the timing of cash flows.
x x x x



B) acquiring and selling fixed assets.
x x x x


C) financing long-term projects. x x


D) capital budgeting.
x



E) issuing additional shares of common stock.
x x x x x




9) Net working capital includes:
x x x




A) copyrights.
B) manufacturing equipment. x


C) common stock. x



D) long-term debt. x



E) inventory.



10) is defined as planning and managing a firm’s long-term assets.
x x x x x x x x x




A) Working capital management x x



B) Cash management
x


C) Cost accounting management
x x



D) Capital budgeting x



E) Capital structure management
x x




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




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