TEST BANK b
Corporate Finance 13th Edition
b b b b
By Stephen Ross, Randolph Westerfield,
b b b b
Chapters 1 - 21, Complete
b b b b b
Versionb1 1
,Chapter 1b
Student name:_
b b
MULTIPLEbCHOICEb-
bChoosebthebonebalternativebthatbbestbcompletesbthebstatementborb
answersbthebquestion.
1) bGenerally, bamongbthosebwhobreportbdirectlybtobthe
arebthebtreasurerbandbthebcontrollerbofbabcorporation.
A) boardbofbdirectors
B) chairpersonbofbthebboard
C) chiefbexecutivebofficer
D) president
E) chiefbfinancialbofficer
2) Abtypicalbchainbofbcommandbinbabcorporationbisbdescribedbbybwhichbonebofbthebfollowingbst
atements?
A) Thebinformationbsystemsbmanagerbreportsbtobthebtreasurer.
B) Thebcreditbmanagerbreportsbtobthebtreasurer.
C) Thebcontrollerbreportsbtobthebchiefbexecutivebofficer.
D) Thebtaxbmanagerbreportsbtobthebtreasurer.
E) Thebcapitalbexpendituresbmanagerbreportsbtobthebcontroller.
3) Answeringbwhichbonebofbthebfollowingbquestionsbinvolvesbmakingbabcapitalbbudgetingbd
ecision?
Versionb1 2
, A) Howbmuchbdebtbshouldbthebfirmbborrowbfrombabparticularblender?
B) Shouldbthebfirmbbuildbabnewbproductionbfacility?
C) Shouldbthebfirmbissuebnewbequitybtobpaybforbitsbgrowthbgoals?
D) Howbmuchbinventorybshouldbthebfirmbkeepbonbhand?
E) Howbmuchbcreditbshouldbthebfirmbextendbtobabparticularbcustomer?
4) Whichbonebofbthebfollowingbstatementsbisbaccurate?
A) Netbworkingbcapitalbequalsbcurrentbassetsbplusbcurrentbliabilities.
B) Currentbliabilitiesbarebdebtsbthatbmustbbebrepaidbinb18bmonthsborbless.
C) Currentbassetsbarebassetsbwithbshortblives,bsuchbasbaccountsbreceivable.
D) Long-termbdebtbisbdefinedbasbabresidualbclaimbonbabfirm’sbassets.
E) Tangiblebassetsbarebfixedbassetsbsuchbasbpatents.
5) Amongbthebtypicalbresponsibilitiesbofbthebcorporatebcontrollerbis:
A) capitalbexpendituresbmanagement.
B) cashbmanagement.
C) taxbreporting.
D) financialbplanning.
E) creditbmanagement.
6) b isbtypicallybthebresponsibilitybofbthebcorporatebtreasurer.
A) Financialbplanning
B) Costbaccounting
C) Taxbreporting
D) Informationbsystems
E) Financialbaccounting
7) Abfirm’s define(s)bitsbcapitalbstructure.
Versionb1 3
, A) mixturebofbvariousbtypesbofbproductionbequipment
B) investmentbselectionsbforbitsbexcessbcashbreserves
C) combinationbofbcashbandbcashbequivalents
D) combinationbofbaccountsbappearingbonbthebleftbsidebofbitsbbalancebsheet
E) proportionsbofbfinancingbfrombdebtbandbequity
8) Thebfocusbofbshort-termbfinancebisbon:
A) thebtimingbofbcashbflows.
B) acquiringbandbsellingbfixedbassets.
C) financingblong-termbprojects.
D) capitalbbudgeting.
E) issuingbadditionalbsharesbofbcommonbstock.
9) Netbworkingbcapitalbincludes:
A) copyrights.
B) manufacturingbequipment.
C) commonbstock.
D) long-termbdebt.
E) inventory.
10) b isbdefinedbasbplanningbandbmanagingbabfirm’sblong-termbassets.
A) Workingbcapitalbmanagement
B) Cashbmanagement
C) Costbaccountingbmanagement
D) Capitalbbudgeting
E) Capitalbstructurebmanagement
11) Anbamountbthebfirmsbowes,bwhichbitbmustbrepaybwithinbtwelvebmonths,bisbcalledba(n):
Versionb1 4
Corporate Finance 13th Edition
b b b b
By Stephen Ross, Randolph Westerfield,
b b b b
Chapters 1 - 21, Complete
b b b b b
Versionb1 1
,Chapter 1b
Student name:_
b b
MULTIPLEbCHOICEb-
bChoosebthebonebalternativebthatbbestbcompletesbthebstatementborb
answersbthebquestion.
1) bGenerally, bamongbthosebwhobreportbdirectlybtobthe
arebthebtreasurerbandbthebcontrollerbofbabcorporation.
A) boardbofbdirectors
B) chairpersonbofbthebboard
C) chiefbexecutivebofficer
D) president
E) chiefbfinancialbofficer
2) Abtypicalbchainbofbcommandbinbabcorporationbisbdescribedbbybwhichbonebofbthebfollowingbst
atements?
A) Thebinformationbsystemsbmanagerbreportsbtobthebtreasurer.
B) Thebcreditbmanagerbreportsbtobthebtreasurer.
C) Thebcontrollerbreportsbtobthebchiefbexecutivebofficer.
D) Thebtaxbmanagerbreportsbtobthebtreasurer.
E) Thebcapitalbexpendituresbmanagerbreportsbtobthebcontroller.
3) Answeringbwhichbonebofbthebfollowingbquestionsbinvolvesbmakingbabcapitalbbudgetingbd
ecision?
Versionb1 2
, A) Howbmuchbdebtbshouldbthebfirmbborrowbfrombabparticularblender?
B) Shouldbthebfirmbbuildbabnewbproductionbfacility?
C) Shouldbthebfirmbissuebnewbequitybtobpaybforbitsbgrowthbgoals?
D) Howbmuchbinventorybshouldbthebfirmbkeepbonbhand?
E) Howbmuchbcreditbshouldbthebfirmbextendbtobabparticularbcustomer?
4) Whichbonebofbthebfollowingbstatementsbisbaccurate?
A) Netbworkingbcapitalbequalsbcurrentbassetsbplusbcurrentbliabilities.
B) Currentbliabilitiesbarebdebtsbthatbmustbbebrepaidbinb18bmonthsborbless.
C) Currentbassetsbarebassetsbwithbshortblives,bsuchbasbaccountsbreceivable.
D) Long-termbdebtbisbdefinedbasbabresidualbclaimbonbabfirm’sbassets.
E) Tangiblebassetsbarebfixedbassetsbsuchbasbpatents.
5) Amongbthebtypicalbresponsibilitiesbofbthebcorporatebcontrollerbis:
A) capitalbexpendituresbmanagement.
B) cashbmanagement.
C) taxbreporting.
D) financialbplanning.
E) creditbmanagement.
6) b isbtypicallybthebresponsibilitybofbthebcorporatebtreasurer.
A) Financialbplanning
B) Costbaccounting
C) Taxbreporting
D) Informationbsystems
E) Financialbaccounting
7) Abfirm’s define(s)bitsbcapitalbstructure.
Versionb1 3
, A) mixturebofbvariousbtypesbofbproductionbequipment
B) investmentbselectionsbforbitsbexcessbcashbreserves
C) combinationbofbcashbandbcashbequivalents
D) combinationbofbaccountsbappearingbonbthebleftbsidebofbitsbbalancebsheet
E) proportionsbofbfinancingbfrombdebtbandbequity
8) Thebfocusbofbshort-termbfinancebisbon:
A) thebtimingbofbcashbflows.
B) acquiringbandbsellingbfixedbassets.
C) financingblong-termbprojects.
D) capitalbbudgeting.
E) issuingbadditionalbsharesbofbcommonbstock.
9) Netbworkingbcapitalbincludes:
A) copyrights.
B) manufacturingbequipment.
C) commonbstock.
D) long-termbdebt.
E) inventory.
10) b isbdefinedbasbplanningbandbmanagingbabfirm’sblong-termbassets.
A) Workingbcapitalbmanagement
B) Cashbmanagement
C) Costbaccountingbmanagement
D) Capitalbbudgeting
E) Capitalbstructurebmanagement
11) Anbamountbthebfirmsbowes,bwhichbitbmustbrepaybwithinbtwelvebmonths,bisbcalledba(n):
Versionb1 4
