Test Bank for Corporate Finance
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version21 1
1
,Chapter211
Student21name:_21
MULTIPLE21CHOICE21-
21Choose21the21one21alternative21that21best21completes21the21statement21or21answers21the21questi
on.
1) Generally,21among21those21who21report21directly21to21the
are21the21treasurer21and21the21controller21of21a21corporation.
A) board21of21directors
B) chairperson21of21the21board
C) chief21executive21officer
D) president
E) chief21financial21officer
2) A21typical21chain21of21command21in21a21corporation21is21described21by21which21one21of2
1the21 following21statements?
A) The21information21systems21manager21reports21to21the21treasurer.
B) The21credit21manager21reports21to21the21treasurer.
C) The21controller21reports21to21the21chief21executive21officer.
D) The21tax21manager21reports21to21the21treasurer.
E) The21capital21expenditures21manager21reports21to21the21controller.
3) Answering21which21one21of21the21following21questions21involves21making21a21capital
21budgeting21decision?
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1
, A) How21much21debt21should21the21firm21borrow21from21a21particular21lender?
B) Should21the21firm21build21a21new21production21facility?
C) Should21the21firm21issue21new21equity21to21pay21for21its21growth21goals?
D) How21much21inventory21should21the21firm21keep21on21hand?
E) How21much21credit21should21the21firm21extend21to21a21particular21customer?
4) Which21one21of21the21following21statements21is21accurate?
A) Net21working21capital21equals21current21assets21plus21current21liabilities.
B) Current21liabilities21are21debts21that21must21be21repaid21in211821months21or21less.
C) Current21assets21are21assets21with21short21lives,21such21as21accounts21receivable.
D) Long-term21debt21is21defined21as21a21residual21claim21on21a21firm’s21assets.
E) Tangible21assets21are21fixed21assets21such21as21patents.
5) Among21the21typical21responsibilities21of21the21corporate21controller21is:
A) capital21expenditures21management.
B) cash21management.
C) tax21reporting.
D) financial21planning.
E) credit21management.
6) 21 is21typically21the21responsibility21of21the21corporate21treasurer.
A) Financial21planning
B) Cost21accounting
C) Tax21reporting
D) Information21systems
E) Financial21accounting
7) A21firm’s define(s)21its21capital21structure.
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1
, A) mixture21of21various21types21of21production21equipment
B) investment21selections21for21its21excess21cash21reserves
C) combination21of21cash21and21cash21equivalents
D) combination21of21accounts21appearing21on21the21left21side21of21its21balance21sheet
E) proportions21of21financing21from21debt21and21equity
8) The21focus21of21short-term21finance21is21on:
A) the21timing21of21cash21flows.
B) acquiring21and21selling21fixed21assets.
C) financing21long-term21projects.
D) capital21budgeting.
E) issuing21additional21shares21of21common21stock.
9) Net21working21capital21includes:
A) copyrights.
B) manufacturing21equipment.
C) common21stock.
D) long-term21debt.
E) inventory.
10) 21 is21defined21as21planning21and21managing21a21firm’s21long-term21assets.
A) Working21capital21management
B) Cash21management
C) Cost21accounting21management
D) Capital21budgeting
E) Capital21structure21management
11) An21amount21the21firms21owes,21which21it21must21repay21within21twelve21months,21is21called
21a(n):
Version21 4
1
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version21 1
1
,Chapter211
Student21name:_21
MULTIPLE21CHOICE21-
21Choose21the21one21alternative21that21best21completes21the21statement21or21answers21the21questi
on.
1) Generally,21among21those21who21report21directly21to21the
are21the21treasurer21and21the21controller21of21a21corporation.
A) board21of21directors
B) chairperson21of21the21board
C) chief21executive21officer
D) president
E) chief21financial21officer
2) A21typical21chain21of21command21in21a21corporation21is21described21by21which21one21of2
1the21 following21statements?
A) The21information21systems21manager21reports21to21the21treasurer.
B) The21credit21manager21reports21to21the21treasurer.
C) The21controller21reports21to21the21chief21executive21officer.
D) The21tax21manager21reports21to21the21treasurer.
E) The21capital21expenditures21manager21reports21to21the21controller.
3) Answering21which21one21of21the21following21questions21involves21making21a21capital
21budgeting21decision?
Version21 2
1
, A) How21much21debt21should21the21firm21borrow21from21a21particular21lender?
B) Should21the21firm21build21a21new21production21facility?
C) Should21the21firm21issue21new21equity21to21pay21for21its21growth21goals?
D) How21much21inventory21should21the21firm21keep21on21hand?
E) How21much21credit21should21the21firm21extend21to21a21particular21customer?
4) Which21one21of21the21following21statements21is21accurate?
A) Net21working21capital21equals21current21assets21plus21current21liabilities.
B) Current21liabilities21are21debts21that21must21be21repaid21in211821months21or21less.
C) Current21assets21are21assets21with21short21lives,21such21as21accounts21receivable.
D) Long-term21debt21is21defined21as21a21residual21claim21on21a21firm’s21assets.
E) Tangible21assets21are21fixed21assets21such21as21patents.
5) Among21the21typical21responsibilities21of21the21corporate21controller21is:
A) capital21expenditures21management.
B) cash21management.
C) tax21reporting.
D) financial21planning.
E) credit21management.
6) 21 is21typically21the21responsibility21of21the21corporate21treasurer.
A) Financial21planning
B) Cost21accounting
C) Tax21reporting
D) Information21systems
E) Financial21accounting
7) A21firm’s define(s)21its21capital21structure.
Version21 3
1
, A) mixture21of21various21types21of21production21equipment
B) investment21selections21for21its21excess21cash21reserves
C) combination21of21cash21and21cash21equivalents
D) combination21of21accounts21appearing21on21the21left21side21of21its21balance21sheet
E) proportions21of21financing21from21debt21and21equity
8) The21focus21of21short-term21finance21is21on:
A) the21timing21of21cash21flows.
B) acquiring21and21selling21fixed21assets.
C) financing21long-term21projects.
D) capital21budgeting.
E) issuing21additional21shares21of21common21stock.
9) Net21working21capital21includes:
A) copyrights.
B) manufacturing21equipment.
C) common21stock.
D) long-term21debt.
E) inventory.
10) 21 is21defined21as21planning21and21managing21a21firm’s21long-term21assets.
A) Working21capital21management
B) Cash21management
C) Cost21accounting21management
D) Capital21budgeting
E) Capital21structure21management
11) An21amount21the21firms21owes,21which21it21must21repay21within21twelve21months,21is21called
21a(n):
Version21 4
1
