Versionk1 1
,TEST BANK
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Chapterk1
Studentkname:_k
MULTIPLEkCHOICEk-
kChoosekthekonekalternativekthatkbestkcompleteskthekstatementkorkanswerskthekquestion.
1) Generally,kamongkthosekwhokreportkdirectlyktokthe
arekthektreasurerkandkthekcontrollerkofkakcorporation.
A) boardkofkdirectors
B) chairpersonkofkthekboard
C) chiefkexecutivekofficer
D) president
E) chiefkfinancialkofficer
2) Aktypicalkchainkofkcommandkinkakcorporationkiskdescribedkbykwhichkonekofkthekfollowingk
statements?
A) Thekinformationksystemskmanagerkreportsktokthektreasurer.
B) Thekcreditkmanagerkreportsktokthektreasurer.
C) Thekcontrollerkreportsktokthekchiefkexecutivekofficer.
D) Thektaxkmanagerkreportsktokthektreasurer.
E) Thekcapitalkexpenditureskmanagerkreportsktokthekcontroller.
3) Answeringkwhichkonekofkthekfollowingkquestionskinvolveskmakingkakcapitalkbudgetingk
decision?
Versionk1 2
, A) Howkmuchkdebtkshouldkthekfirmkborrowkfromkakparticularklender?
B) Shouldkthekfirmkbuildkaknewkproductionkfacility?
C) Shouldkthekfirmkissueknewkequityktokpaykforkitskgrowthkgoals?
D) Howkmuchkinventorykshouldkthekfirmkkeepkonkhand?
E) Howkmuchkcreditkshouldkthekfirmkextendktokakparticularkcustomer?
4) Whichkonekofkthekfollowingkstatementskiskaccurate?
A) Netkworkingkcapitalkequalskcurrentkassetskpluskcurrentkliabilities.
B) Currentkliabilitieskarekdebtskthatkmustkbekrepaidkink18kmonthskorkless.
C) Currentkassetskarekassetskwithkshortklives,ksuchkaskaccountskreceivable.
D) Long-termkdebtk iskdefinedkaskakresidualkclaimkonkakfirm’skassets.
E) Tangiblekassetskarekfixedkassetsksuchkaskpatents.
5) Amongkthektypicalkresponsibilitieskofkthekcorporatekcontrollerkis:
A) capitalkexpenditureskmanagement.
B) cashkmanagement.
C) taxkreporting.
D) financialkplanning.
E) creditkmanagement.
6) k isktypicallykthekresponsibilitykofkthekcorporatektreasurer.
A) Financialkplanning
B) Costkaccounting
C) Taxkreporting
D) Informationksystems
E) Financialkaccounting
7) Akfirm’s define(s)kitskcapitalkstructure.
Versionk1 3
, A) mixturekofkvariousktypeskofkproductionkequipment
B) investmentkselectionskforkitskexcesskcashkreserves
C) combinationkofkcashkandkcashkequivalents
D) combinationkofkaccountskappearingkonkthekleftksidekofkitskbalanceksheet
E) proportionskofkfinancingkfromkdebtkandkequity
8) Thekfocuskofkshort-termkfinancekiskon:
A) thektimingkofkcashkflows.
B) acquiringkandksellingkfixedkassets.
C) financingklong-termkprojects.
D) capitalkbudgeting.
E) issuingkadditionalkshareskofkcommonkstock.
9) Netkworkingkcapitalkincludes:
A) copyrights.
B) manufacturingkequipment.
C) commonkstock.
D) long-termkdebt.
E) inventory.
10) k iskdefinedkaskplanningkandkmanagingkakfirm’sklong-termkassets.
A) Workingkcapitalkmanagement
B) Cashkmanagement
C) Costkaccountingkmanagement
D) Capitalkbudgeting
E) Capitalkstructurekmanagement
11) Ankamountkthekfirmskowes,kwhichkitkmustkrepaykwithinktwelvekmonths,kiskcalledka(n):
Versionk1 4
,TEST BANK
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Chapterk1
Studentkname:_k
MULTIPLEkCHOICEk-
kChoosekthekonekalternativekthatkbestkcompleteskthekstatementkorkanswerskthekquestion.
1) Generally,kamongkthosekwhokreportkdirectlyktokthe
arekthektreasurerkandkthekcontrollerkofkakcorporation.
A) boardkofkdirectors
B) chairpersonkofkthekboard
C) chiefkexecutivekofficer
D) president
E) chiefkfinancialkofficer
2) Aktypicalkchainkofkcommandkinkakcorporationkiskdescribedkbykwhichkonekofkthekfollowingk
statements?
A) Thekinformationksystemskmanagerkreportsktokthektreasurer.
B) Thekcreditkmanagerkreportsktokthektreasurer.
C) Thekcontrollerkreportsktokthekchiefkexecutivekofficer.
D) Thektaxkmanagerkreportsktokthektreasurer.
E) Thekcapitalkexpenditureskmanagerkreportsktokthekcontroller.
3) Answeringkwhichkonekofkthekfollowingkquestionskinvolveskmakingkakcapitalkbudgetingk
decision?
Versionk1 2
, A) Howkmuchkdebtkshouldkthekfirmkborrowkfromkakparticularklender?
B) Shouldkthekfirmkbuildkaknewkproductionkfacility?
C) Shouldkthekfirmkissueknewkequityktokpaykforkitskgrowthkgoals?
D) Howkmuchkinventorykshouldkthekfirmkkeepkonkhand?
E) Howkmuchkcreditkshouldkthekfirmkextendktokakparticularkcustomer?
4) Whichkonekofkthekfollowingkstatementskiskaccurate?
A) Netkworkingkcapitalkequalskcurrentkassetskpluskcurrentkliabilities.
B) Currentkliabilitieskarekdebtskthatkmustkbekrepaidkink18kmonthskorkless.
C) Currentkassetskarekassetskwithkshortklives,ksuchkaskaccountskreceivable.
D) Long-termkdebtk iskdefinedkaskakresidualkclaimkonkakfirm’skassets.
E) Tangiblekassetskarekfixedkassetsksuchkaskpatents.
5) Amongkthektypicalkresponsibilitieskofkthekcorporatekcontrollerkis:
A) capitalkexpenditureskmanagement.
B) cashkmanagement.
C) taxkreporting.
D) financialkplanning.
E) creditkmanagement.
6) k isktypicallykthekresponsibilitykofkthekcorporatektreasurer.
A) Financialkplanning
B) Costkaccounting
C) Taxkreporting
D) Informationksystems
E) Financialkaccounting
7) Akfirm’s define(s)kitskcapitalkstructure.
Versionk1 3
, A) mixturekofkvariousktypeskofkproductionkequipment
B) investmentkselectionskforkitskexcesskcashkreserves
C) combinationkofkcashkandkcashkequivalents
D) combinationkofkaccountskappearingkonkthekleftksidekofkitskbalanceksheet
E) proportionskofkfinancingkfromkdebtkandkequity
8) Thekfocuskofkshort-termkfinancekiskon:
A) thektimingkofkcashkflows.
B) acquiringkandksellingkfixedkassets.
C) financingklong-termkprojects.
D) capitalkbudgeting.
E) issuingkadditionalkshareskofkcommonkstock.
9) Netkworkingkcapitalkincludes:
A) copyrights.
B) manufacturingkequipment.
C) commonkstock.
D) long-termkdebt.
E) inventory.
10) k iskdefinedkaskplanningkandkmanagingkakfirm’sklong-termkassets.
A) Workingkcapitalkmanagement
B) Cashkmanagement
C) Costkaccountingkmanagement
D) Capitalkbudgeting
E) Capitalkstructurekmanagement
11) Ankamountkthekfirmskowes,kwhichkitkmustkrepaykwithinktwelvekmonths,kiskcalledka(n):
Versionk1 4
