Test Bank for Corporate Finance 12th Edition by Ross
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All Chapter 1-27 Fully Covered
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,Corporate Finance, 12e (Ross) b k bk b k
Chapter 1 Introduction to Corporate Finance
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1) The treasurer and the controller of a corporation generally report to the:
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A) board of directors. bk bk
B) chairman of the board. bk bk bk
C) chief executive officer.
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D) president.
E) chief financial officer.
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Answer: E bk b k
Difficulty: 1 Easy
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Section: 1.1 What is Corporate Finance?
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Topic: Management organization and
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roles Bloom's:
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AACSB: Reflective Thinking bk
Accessibility: Keyboard
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Navigation
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2) Which one of the following statements correctly depicts the common chain of command
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in a
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b k
A) The information systems manager reports to the treasurer.
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B) The credit manager reports to the treasurer.
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C) The controller reports to the chief executive officer.
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D) The tax manager reports to the treasurer.
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E) The capital expenditures manager reports to the controller.
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Answer: B bk b k
Difficulty: 1 Easy
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Section: 1.1 What is Corporate Finance?
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Topic: Management organization and
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roles Bloom's:
bk bk Remember
AACSB: Reflective Thinking bk
Accessibility: Keyboard
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Navigation
bk
3) Which one of the following is a capital budgeting decision?
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A) Determining how much debt should be borrowed from a particular lender
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B) Deciding whether or not a new production facility should be built
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C) Deciding when to repay a long-term debt
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D) Determining how much inventory to keep on hand bk bk bk bk bk bk bk
E) Deciding how much credit to grant to a particular customer
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Answer: bk b k B
,Difficulty: 1 Easy bk bk
Section: 1.1 What is Corporate Finance?
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Topic: Capital budgeting
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Bloom's: Understand AACSB: bk
Reflective Thinking b k
Accessibility: Keyboard Navigation
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4) Which one of these is a correct definition?
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A) Net working capital equals current assets plus current liabilities.
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B) Current liabilities are debts that must be repaid in 18 months or less.
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C) Current assets are assets with short lives, such as accounts receivable.
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D) Long-term debt is defined as a residual claim on a firm's assets.
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E) Tangible assets are fixed assets such as patents.
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Answer: C
Difficulty: 1 Easy
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Section: 1.1 What is Corporate Finance?
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Topic:
b k Introduction to
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finance Bloom's: Remember
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AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
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5) The corporate controller is generally responsible for which one of these functions?
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A) Capital expenditures bk
B) Cash management
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C) Tax reporting
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D) Financial planning bk
E) Credit m anagement bk
Answer: C bk b k
Difficulty: 1 Easy
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Section: 1.1 What is Corporate Finance?
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Topic: Management organization and
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roles Bloom's:
bk bk Remember
AACSB: Reflective Thinking bk
Accessibility: Keyboard
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Navigation
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6) The corporate treasurer oversees which one of these areas?
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A) Financial planning bk
B) Cost accounting
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C) Tax reporting
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D) Information systems bk
E) Financial accounting bk
Answer: bk b k A
, Difficulty: 1 Easy bk bk
Section: 1.1 What is Corporate Finance?
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Topic: Management organization and
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roles Bloom's:
bk bk Remember
AACSB: Reflective Thinking bk
Accessibility: Keyboard
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Navigation
bk
7) A firm's capital structure refers to the firm's:
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A) mixture of various types of production equipment.
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B) investment selections for its excess cash reserves.
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C) combination of cash and cash equivalents. bk bk bk bk bk
D) combination of accounts appearing on the left side of its balance sheet.
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E) proportions of financing from current and long-term debt and equity.
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Answer: E bk b k
Difficulty: 1 Easy
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Section: 1.1 What is Corporate Finance?
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Topic: Capital structure
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Bloom's: Remember AACSB: bk
Reflective Thinking b k
Accessibility: Keyboard Navigation
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8) Short-term finance deals with: bk bk bk
A) the timing of cash flows.
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B) acquiring and selling fixed assets. bk bk bk bk
C) financing long-term projects. bk bk
D) capital budgeting. bk
E) issuing additional shares of common stock.
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Answer: A bk b k
Difficulty: 1 Easy
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Section: 1.1 What is Corporate
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Finance? Topic: Cash management
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- general Bloom's: Understand
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AACSB: Reflective Thinking bk
bkAccessibility: Keyboard b k
Navigation
bk
bk bk bk bk bk bk bk bk bk
All Chapter 1-27 Fully Covered
bk bk bk bk bk
,Corporate Finance, 12e (Ross) b k bk b k
Chapter 1 Introduction to Corporate Finance
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1) The treasurer and the controller of a corporation generally report to the:
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A) board of directors. bk bk
B) chairman of the board. bk bk bk
C) chief executive officer.
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D) president.
E) chief financial officer.
bk bk
Answer: E bk b k
Difficulty: 1 Easy
bk bk bk
Section: 1.1 What is Corporate Finance?
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Topic: Management organization and
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roles Bloom's:
bk bk Remember
AACSB: Reflective Thinking bk
Accessibility: Keyboard
bk b k
Navigation
bk
2) Which one of the following statements correctly depicts the common chain of command
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in a
bk bkcorporation?
b k
A) The information systems manager reports to the treasurer.
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B) The credit manager reports to the treasurer.
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C) The controller reports to the chief executive officer.
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D) The tax manager reports to the treasurer.
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E) The capital expenditures manager reports to the controller.
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Answer: B bk b k
Difficulty: 1 Easy
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Section: 1.1 What is Corporate Finance?
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Topic: Management organization and
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roles Bloom's:
bk bk Remember
AACSB: Reflective Thinking bk
Accessibility: Keyboard
bk b k
Navigation
bk
3) Which one of the following is a capital budgeting decision?
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A) Determining how much debt should be borrowed from a particular lender
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B) Deciding whether or not a new production facility should be built
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C) Deciding when to repay a long-term debt
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D) Determining how much inventory to keep on hand bk bk bk bk bk bk bk
E) Deciding how much credit to grant to a particular customer
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Answer: bk b k B
,Difficulty: 1 Easy bk bk
Section: 1.1 What is Corporate Finance?
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Topic: Capital budgeting
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Bloom's: Understand AACSB: bk
Reflective Thinking b k
Accessibility: Keyboard Navigation
bk bk b k bk
4) Which one of these is a correct definition?
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A) Net working capital equals current assets plus current liabilities.
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B) Current liabilities are debts that must be repaid in 18 months or less.
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C) Current assets are assets with short lives, such as accounts receivable.
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D) Long-term debt is defined as a residual claim on a firm's assets.
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E) Tangible assets are fixed assets such as patents.
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Answer: C
Difficulty: 1 Easy
bk bk bk
Section: 1.1 What is Corporate Finance?
bk bk bk bk bk
Topic:
b k Introduction to
bk corporate bk bk
finance Bloom's: Remember
bk b k b k
AACSB: Reflective Thinking
Accessibility: Keyboard Navigation
bk bk b k bk
5) The corporate controller is generally responsible for which one of these functions?
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A) Capital expenditures bk
B) Cash management
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C) Tax reporting
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D) Financial planning bk
E) Credit m anagement bk
Answer: C bk b k
Difficulty: 1 Easy
bk bk bk
Section: 1.1 What is Corporate Finance?
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Topic: Management organization and
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roles Bloom's:
bk bk Remember
AACSB: Reflective Thinking bk
Accessibility: Keyboard
bk b k
Navigation
bk
6) The corporate treasurer oversees which one of these areas?
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A) Financial planning bk
B) Cost accounting
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C) Tax reporting
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D) Information systems bk
E) Financial accounting bk
Answer: bk b k A
, Difficulty: 1 Easy bk bk
Section: 1.1 What is Corporate Finance?
bk b k bk bk bk bk
Topic: Management organization and
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roles Bloom's:
bk bk Remember
AACSB: Reflective Thinking bk
Accessibility: Keyboard
bk b k
Navigation
bk
7) A firm's capital structure refers to the firm's:
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A) mixture of various types of production equipment.
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B) investment selections for its excess cash reserves.
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C) combination of cash and cash equivalents. bk bk bk bk bk
D) combination of accounts appearing on the left side of its balance sheet.
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E) proportions of financing from current and long-term debt and equity.
bk bk bk bk bk bk bk bk bk
Answer: E bk b k
Difficulty: 1 Easy
bk bk bk
Section: 1.1 What is Corporate Finance?
bk b k bk bk bk bk
Topic: Capital structure
b k bk bk bk
Bloom's: Remember AACSB: bk
Reflective Thinking b k
Accessibility: Keyboard Navigation
bk bk b k bk
8) Short-term finance deals with: bk bk bk
A) the timing of cash flows.
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B) acquiring and selling fixed assets. bk bk bk bk
C) financing long-term projects. bk bk
D) capital budgeting. bk
E) issuing additional shares of common stock.
bk bk bk bk bk
Answer: A bk b k
Difficulty: 1 Easy
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Section: 1.1 What is Corporate
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Finance? Topic: Cash management
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- general Bloom's: Understand
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AACSB: Reflective Thinking bk
bkAccessibility: Keyboard b k
Navigation
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