TEST BANK FOR A) How much debt should the firm borrow from a particular lender?
B) Should the firm build a new production facility?
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
C) Should the firm issue new equity to pay for its growth goals?
D) How much inventory should the firm keep on hand?
E) How much credit should the firm extend to a particular customer?
Chapter 1
Student name:__________
4) Which one of the following statements is accurate?
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question. A) Net working capital equals current assets plus current liabilities.
1) Generally, among those who report directly to the ________ are the treasurer and the B) Current liabilities are debts that must be repaid in 18 months or less.
controller of a corporation. C) Current assets are assets with short lives, such as accounts receivable.
D) Long-term debt is defined as a residual claim on a firm’s assets.
A) board of directors E) Tangible assets are fixed assets such as patents.
B) chairperson of the board
C) chief executive officer
D) president
5) Among the typical responsibilities of the corporate controller is:
E) chief financial officer
A) capital expenditures management.
B) cash management.
2) A typical chain of command in a corporation is described by which one of the following
C) tax reporting.
statements?
D) financial planning.
E) credit management.
A) The information systems manager reports to the treasurer.
B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
D) The tax manager reports to the treasurer. 6) ________ is typically the responsibility of the corporate treasurer.
E) The capital expenditures manager reports to the controller.
A) Financial planning
B) Cost accounting
C) Tax reporting
3) Answering which one of the following questions involves making a capital budgeting
D) Information systems
decision?
E) Financial accounting
7) A firm’s ________ define(s) its capital structure.
Version 1 1 Version 1 2
B) Should the firm build a new production facility?
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
C) Should the firm issue new equity to pay for its growth goals?
D) How much inventory should the firm keep on hand?
E) How much credit should the firm extend to a particular customer?
Chapter 1
Student name:__________
4) Which one of the following statements is accurate?
MULTIPLE CHOICE - Choose the one alternative that best completes the statement or
answers the question. A) Net working capital equals current assets plus current liabilities.
1) Generally, among those who report directly to the ________ are the treasurer and the B) Current liabilities are debts that must be repaid in 18 months or less.
controller of a corporation. C) Current assets are assets with short lives, such as accounts receivable.
D) Long-term debt is defined as a residual claim on a firm’s assets.
A) board of directors E) Tangible assets are fixed assets such as patents.
B) chairperson of the board
C) chief executive officer
D) president
5) Among the typical responsibilities of the corporate controller is:
E) chief financial officer
A) capital expenditures management.
B) cash management.
2) A typical chain of command in a corporation is described by which one of the following
C) tax reporting.
statements?
D) financial planning.
E) credit management.
A) The information systems manager reports to the treasurer.
B) The credit manager reports to the treasurer.
C) The controller reports to the chief executive officer.
D) The tax manager reports to the treasurer. 6) ________ is typically the responsibility of the corporate treasurer.
E) The capital expenditures manager reports to the controller.
A) Financial planning
B) Cost accounting
C) Tax reporting
3) Answering which one of the following questions involves making a capital budgeting
D) Information systems
decision?
E) Financial accounting
7) A firm’s ________ define(s) its capital structure.
Version 1 1 Version 1 2
