Test Bank for Corporate Finance
fr fr fr fr fr
13th Edition By Stephen Ross, Randolph Westerfield, Ch
fr fr fr fr fr fr fr
apters 1 - 21, Complete
fr fr fr fr
Versionfr1 1
,Chapter 1 fr
Student name:_
fr fr
MULTIPLEfrCHOICEfr-
frChoosefrthefronefralternativefrthatfrbestfrcompletesfrthefrstatementfrorra
f nswersfrthefr question.
1) Generally,framongfrthosefrwhofrreportfrdirectlyfrtofrthe
arefrthefrtreasurerfrandfrtherfcontrollerfroffrafrcorporation.
A) boardfroffrdirectors
B) chairpersonfroffrthefrboard
C) chieffrexecutivefrofficer
D) president
E) chieffrfinancialfrofficer
2) Afrtypicalfrchainfroffrcommandfrinfrafrcorporationfrisfrdescribedfrbyfrwhichfronefroffrthefrfollowin
grfstatements?
A) Thefrinformationfrsystemsfrmanagerfrreportsfrtofrthefrtreasurer.
B) Thefrcreditfrmanagerfrreportsfrtofrthefrtreasurer.
C) Thefrcontrollerfrreportsfrtofrthefrchieffrexecutivefrofficer.
D) Thefrtaxfrmanagerfrreportsfrtofrthefrtreasurer.
E) Thefrcapitalfrexpendituresfrmanagerfrreportsfrtofrthefrcontroller.
3) Answeringfrwhichfronefroffrthefrfollowingfrquestionsfrinvolvesfrmakingfrafrcapitalfrbudgetin
grfdecision?
Versionfr1 2
, A) Howfrmuchfrdebtfrshouldfrthefrfirmfrborrowfrfromfrafrparticularfrlender?
B) Shouldfrthefrfirmfrbuildfrafrnewfrproductionfrfacility?
C) Shouldfrthefrfirmfrissuefrnewfrequityfrtofrpayfrforfritsfrgrowthfrgoals?
D) Howfrmuchfrinventoryfrshouldfrthefrfirmfrkeepfronfrhand?
E) Howfrmuchfrcreditfrshouldfrthefrfirmfrextendfrtofrafrparticularfrcustomer?
4) Whichfronefroffrthefrfollowingfrstatementsfrisfraccurate?
A) Netfrworkingfrcapitalfrequalsfrcurrentfrassetsfrplusfrcurrentfrliabilities.
B) Currentfrliabilitiesfrarefrdebtsfrthatfrmustfrbefrrepaidfrinfr18frmonthsfrorfrless.
C) Currentfrassetsfrarefrassetsfrwithfrshortfrlives,frsuchfrasfraccountsfrreceivable.
D) Long-termfrdebtfr isfrdefinedfrasfrafrresidualfrclaimfronfrafrfirm’sfrassets.
E) Tangiblefrassetsfrarefrfixedfrassetsfrsuchfrasfrpatents.
5) Amongfrthefrtypicalfrresponsibilitiesfroffrthefrcorporatefrcontrollerfris:
A) capitalfrexpendituresfrmanagement.
B) cashfrmanagement.
C) taxfrreporting.
D) financialfrplanning.
E) creditfrmanagement.
6) fr isfrtypicallyfrthefrresponsibilityfroffrthefrcorporatefrtreasurer.
A) Financialfrplanning
B) Costfraccounting
C) Taxfrreporting
D) Informationfrsystems
E) Financialfraccounting
7) Afrfirm’s define(s)fritsfrcapitalfrstructure.
Versionfr1 3
, A) mixturefroffrvariousfrtypesfroffrproductionfrequipment
B) investmentfrselectionsfrforfritsfrexcessfrcashfrreserves
C) combinationfroffrcashfrandfrcashfrequivalents
D) combinationfroffraccountsfrappearingfronfrthefrleftfrsidefroffritsfrbalancefrsheet
E) proportionsfroffrfinancingfrfromfrdebtfrandfrequity
8) Thefrfocusfroffrshort-termfrfinancefrisfron:
A) thefrtimingfroffrcashfrflows.
B) acquiringfrandfrsellingfrfixedfrassets.
C) financingfrlong-termfrprojects.
D) capitalfrbudgeting.
E) issuingfradditionalfrsharesfroffrcommonfrstock.
9) Netfrworkingfrcapitalfrincludes:
A) copyrights.
B) manufacturingfrequipment.
C) commonfrstock.
D) long-termfrdebt.
E) inventory.
10) fr isfrdefinedfrasfrplanningfrandfrmanagingfrafrfirm’sfrlong-termfrassets.
A) Workingfrcapitalfrmanagement
B) Cashfrmanagement
C) Costfraccountingfrmanagement
D) Capitalfrbudgeting
E) Capitalfrstructurefrmanagement
11) Anframountfrthefrfirmsfrowes,frwhichfritfrmustfrrepayfrwithinfrtwelvefrmonths,frisfrcalledfra(n):
Versionfr1 4
fr fr fr fr fr
13th Edition By Stephen Ross, Randolph Westerfield, Ch
fr fr fr fr fr fr fr
apters 1 - 21, Complete
fr fr fr fr
Versionfr1 1
,Chapter 1 fr
Student name:_
fr fr
MULTIPLEfrCHOICEfr-
frChoosefrthefronefralternativefrthatfrbestfrcompletesfrthefrstatementfrorra
f nswersfrthefr question.
1) Generally,framongfrthosefrwhofrreportfrdirectlyfrtofrthe
arefrthefrtreasurerfrandfrtherfcontrollerfroffrafrcorporation.
A) boardfroffrdirectors
B) chairpersonfroffrthefrboard
C) chieffrexecutivefrofficer
D) president
E) chieffrfinancialfrofficer
2) Afrtypicalfrchainfroffrcommandfrinfrafrcorporationfrisfrdescribedfrbyfrwhichfronefroffrthefrfollowin
grfstatements?
A) Thefrinformationfrsystemsfrmanagerfrreportsfrtofrthefrtreasurer.
B) Thefrcreditfrmanagerfrreportsfrtofrthefrtreasurer.
C) Thefrcontrollerfrreportsfrtofrthefrchieffrexecutivefrofficer.
D) Thefrtaxfrmanagerfrreportsfrtofrthefrtreasurer.
E) Thefrcapitalfrexpendituresfrmanagerfrreportsfrtofrthefrcontroller.
3) Answeringfrwhichfronefroffrthefrfollowingfrquestionsfrinvolvesfrmakingfrafrcapitalfrbudgetin
grfdecision?
Versionfr1 2
, A) Howfrmuchfrdebtfrshouldfrthefrfirmfrborrowfrfromfrafrparticularfrlender?
B) Shouldfrthefrfirmfrbuildfrafrnewfrproductionfrfacility?
C) Shouldfrthefrfirmfrissuefrnewfrequityfrtofrpayfrforfritsfrgrowthfrgoals?
D) Howfrmuchfrinventoryfrshouldfrthefrfirmfrkeepfronfrhand?
E) Howfrmuchfrcreditfrshouldfrthefrfirmfrextendfrtofrafrparticularfrcustomer?
4) Whichfronefroffrthefrfollowingfrstatementsfrisfraccurate?
A) Netfrworkingfrcapitalfrequalsfrcurrentfrassetsfrplusfrcurrentfrliabilities.
B) Currentfrliabilitiesfrarefrdebtsfrthatfrmustfrbefrrepaidfrinfr18frmonthsfrorfrless.
C) Currentfrassetsfrarefrassetsfrwithfrshortfrlives,frsuchfrasfraccountsfrreceivable.
D) Long-termfrdebtfr isfrdefinedfrasfrafrresidualfrclaimfronfrafrfirm’sfrassets.
E) Tangiblefrassetsfrarefrfixedfrassetsfrsuchfrasfrpatents.
5) Amongfrthefrtypicalfrresponsibilitiesfroffrthefrcorporatefrcontrollerfris:
A) capitalfrexpendituresfrmanagement.
B) cashfrmanagement.
C) taxfrreporting.
D) financialfrplanning.
E) creditfrmanagement.
6) fr isfrtypicallyfrthefrresponsibilityfroffrthefrcorporatefrtreasurer.
A) Financialfrplanning
B) Costfraccounting
C) Taxfrreporting
D) Informationfrsystems
E) Financialfraccounting
7) Afrfirm’s define(s)fritsfrcapitalfrstructure.
Versionfr1 3
, A) mixturefroffrvariousfrtypesfroffrproductionfrequipment
B) investmentfrselectionsfrforfritsfrexcessfrcashfrreserves
C) combinationfroffrcashfrandfrcashfrequivalents
D) combinationfroffraccountsfrappearingfronfrthefrleftfrsidefroffritsfrbalancefrsheet
E) proportionsfroffrfinancingfrfromfrdebtfrandfrequity
8) Thefrfocusfroffrshort-termfrfinancefrisfron:
A) thefrtimingfroffrcashfrflows.
B) acquiringfrandfrsellingfrfixedfrassets.
C) financingfrlong-termfrprojects.
D) capitalfrbudgeting.
E) issuingfradditionalfrsharesfroffrcommonfrstock.
9) Netfrworkingfrcapitalfrincludes:
A) copyrights.
B) manufacturingfrequipment.
C) commonfrstock.
D) long-termfrdebt.
E) inventory.
10) fr isfrdefinedfrasfrplanningfrandfrmanagingfrafrfirm’sfrlong-termfrassets.
A) Workingfrcapitalfrmanagement
B) Cashfrmanagement
C) Costfraccountingfrmanagement
D) Capitalfrbudgeting
E) Capitalfrstructurefrmanagement
11) Anframountfrthefrfirmsfrowes,frwhichfritfrmustfrrepayfrwithinfrtwelvefrmonths,frisfrcalledfra(n):
Versionfr1 4
