```````````` TEST BANK
Corporate Finance 13th edition by Stephen Ross, Randolph
Westerfield, Jeffrey Jaffe
````````` `````
Version`1 1
,Chapter`1
Student`name:
MULTIPLE`CHOICE`-
`Choose`the`one`alternative`that`best`completes`the`statement`or`answers`the`question.
1) Generally,`among`those`who`report`directly`to`the`
are`the`treasurer`and`the`controller`of`a`corporation.
A) board`of`directors
B) chairperson`of`the`board
C) chief`executive`officer
D) president
E) chief`financial`officer
2) A`typical`chain`of`command`in`a`corporation`is`described`by`which`one`of`the`following`s
tatements?
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.
E) The`capital`expenditures`manager`reports`to`the`controller.
3) Answering`which`one`of`the`following`questions`involves`making`a`capital`budgeting`
decision?
Version`1 2
, A) How`much`debt`should`the`firm`borrow`from`a`particular`lender?
B) Should`the`firm`build`a`new`production`facility?
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?
4) Which`one`of`the`following`statements`is`accurate?
A) Net`working`capital`equals`current`assets`plus`current`liabilities.
B) Current`liabilities`are`debts`that`must`be`repaid`in`18`months`or`less.
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.
E) Tangible`assets`are`fixed`assets`such`as`patents.
5) Among`the`typical`responsibilities`of`the`corporate`controller`is:
A) capital`expenditures`management.
B) cash`management.
C) tax`reporting.
D) financial`planning.
E) credit`management.
6) is`typically`the`responsibility`of`the`corporate`treasurer.
A) Financial`planning
B) Cost`accounting
C) Tax`reporting
D) Information`systems
E) Financial`accounting
7) A`firm’s` define(s)`its`capital`structure.
Version`1 3
, A) mixture`of`various`types`of`production`equipment
B) investment`selections`for`its`excess`cash`reserves
C) combination`of`cash`and`cash`equivalents
D) combination`of`accounts`appearing`on`the`left`side`of`its`balance`sheet
E) proportions`of`financing`from`debt`and`equity
8) The`focus`of`short-term`finance`is`on:
A) the`timing`of`cash`flows.
B) acquiring`and`selling`fixed`assets.
C) financing`long-term`projects.
D) capital`budgeting.
E) issuing`additional`shares`of`common`stock.
9) Net`working`capital`includes:
A) copyrights.
B) manufacturing`equipment.
C) common`stock.
D) long-term`debt.
E) inventory.
10) is`defined`as`planning`and`managing`a`firm’s`long-term`assets.
A) Working`capital`management
B) Cash`management
C) Cost`accounting`management
D) Capital`budgeting
E) Capital`structure`management
11) An`amount`the`firms`owes,`which`it`must`repay`within`twelve`months,`is`called`a(n):
Version`1 4
Corporate Finance 13th edition by Stephen Ross, Randolph
Westerfield, Jeffrey Jaffe
````````` `````
Version`1 1
,Chapter`1
Student`name:
MULTIPLE`CHOICE`-
`Choose`the`one`alternative`that`best`completes`the`statement`or`answers`the`question.
1) Generally,`among`those`who`report`directly`to`the`
are`the`treasurer`and`the`controller`of`a`corporation.
A) board`of`directors
B) chairperson`of`the`board
C) chief`executive`officer
D) president
E) chief`financial`officer
2) A`typical`chain`of`command`in`a`corporation`is`described`by`which`one`of`the`following`s
tatements?
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.
E) The`capital`expenditures`manager`reports`to`the`controller.
3) Answering`which`one`of`the`following`questions`involves`making`a`capital`budgeting`
decision?
Version`1 2
, A) How`much`debt`should`the`firm`borrow`from`a`particular`lender?
B) Should`the`firm`build`a`new`production`facility?
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?
4) Which`one`of`the`following`statements`is`accurate?
A) Net`working`capital`equals`current`assets`plus`current`liabilities.
B) Current`liabilities`are`debts`that`must`be`repaid`in`18`months`or`less.
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.
E) Tangible`assets`are`fixed`assets`such`as`patents.
5) Among`the`typical`responsibilities`of`the`corporate`controller`is:
A) capital`expenditures`management.
B) cash`management.
C) tax`reporting.
D) financial`planning.
E) credit`management.
6) is`typically`the`responsibility`of`the`corporate`treasurer.
A) Financial`planning
B) Cost`accounting
C) Tax`reporting
D) Information`systems
E) Financial`accounting
7) A`firm’s` define(s)`its`capital`structure.
Version`1 3
, A) mixture`of`various`types`of`production`equipment
B) investment`selections`for`its`excess`cash`reserves
C) combination`of`cash`and`cash`equivalents
D) combination`of`accounts`appearing`on`the`left`side`of`its`balance`sheet
E) proportions`of`financing`from`debt`and`equity
8) The`focus`of`short-term`finance`is`on:
A) the`timing`of`cash`flows.
B) acquiring`and`selling`fixed`assets.
C) financing`long-term`projects.
D) capital`budgeting.
E) issuing`additional`shares`of`common`stock.
9) Net`working`capital`includes:
A) copyrights.
B) manufacturing`equipment.
C) common`stock.
D) long-term`debt.
E) inventory.
10) is`defined`as`planning`and`managing`a`firm’s`long-term`assets.
A) Working`capital`management
B) Cash`management
C) Cost`accounting`management
D) Capital`budgeting
E) Capital`structure`management
11) An`amount`the`firms`owes,`which`it`must`repay`within`twelve`months,`is`called`a(n):
Version`1 4
