TEST BANK
Fundamentals of Corporate Finance, 13th Edition by Ross,
Westerfield.
Version`1 1
,Chapter`1-
27`Answers`are`at`the`end`of`Each`chapter`Chapter`1
Student`name:
The`controller,`rather`than`the`treasurer,`is`typically`responsible`for`which`one`of`the`followi
ng`functions?
1)`
Depositing`cash`receipts
Processing`cost`reports
Analyzing`equipment`purchases
Approving`credit`for`a`customer
Paying`a`vendor
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Difficulty`:
`1`Basic
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Management`organization`and`roles`
AACSB`:`Reflective`Thinking
Bloom's`:`Remember
Usually,`the`treasurer`of`a`corporation`reports`directly`to`the:
2)`
Version`1 2
, board`of`directors.
chair`of`the`board.
chief`executive`officer.
president.
vice`president`of`finance.
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Difficulty`:
`1`Basic
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Management`organization`and`roles`
AACSB`:`Reflective`Thinking
Bloom's`:`Remember
In`a`typical`corporate`organizational`structure:
3)`
the`vice`president`of`finance`reports`to`the`chair`of`the`board.
the`chief`executive`officer`reports`to`the`president.
the`controller`reports`to`the`chief`financial`officer.
the`treasurer`reports`to`the`president.
the`chief`operations`officer`reports`to`the`vice`president`of`production.
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Difficulty`:
`1`Basic
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Management`organization`and`roles`
AACSB`:`Reflective`Thinking
Bloom's`:`Remember
Version`1 3
, Which`one`of`the`following`questions`involves`a`capital`budgeting`decision?
4)`
How`many`shares`of`stock`should`the`firm`issue?
Should`the`firm`purchase`a`new`machine`for`the`production`line?
Should`the`firm`borrow`money`to`acquire`new`equipment?
How`much`inventory`should`the`firm`keep`on`hand?
How`much`money`should`be`kept`in`the`checking`account?
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Bloom's`:`
Understand
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Financial`management`decisions`Diff
iculty`:`2`Intermediate
AACSB`:`Reflective`Thinking
When`evaluating`the`timing`of`a`project’s`projected`cash`flows,`a`financial`manager`is`analyzin
g:
5)`
the`amount`of`each`expected`cash`flow.
only`the`start-up`costs`that`are`expected`to`require`cash`resources.
only`the`date`of`the`final`cash`flow`related`to`the`project.
the`amount`by`which`cash`receipts`are`expected`to`exceed`cash`outflows.
when`each`cash`flow`is`expected`to`occur.
Version`1 4
Fundamentals of Corporate Finance, 13th Edition by Ross,
Westerfield.
Version`1 1
,Chapter`1-
27`Answers`are`at`the`end`of`Each`chapter`Chapter`1
Student`name:
The`controller,`rather`than`the`treasurer,`is`typically`responsible`for`which`one`of`the`followi
ng`functions?
1)`
Depositing`cash`receipts
Processing`cost`reports
Analyzing`equipment`purchases
Approving`credit`for`a`customer
Paying`a`vendor
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Difficulty`:
`1`Basic
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Management`organization`and`roles`
AACSB`:`Reflective`Thinking
Bloom's`:`Remember
Usually,`the`treasurer`of`a`corporation`reports`directly`to`the:
2)`
Version`1 2
, board`of`directors.
chair`of`the`board.
chief`executive`officer.
president.
vice`president`of`finance.
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Difficulty`:
`1`Basic
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Management`organization`and`roles`
AACSB`:`Reflective`Thinking
Bloom's`:`Remember
In`a`typical`corporate`organizational`structure:
3)`
the`vice`president`of`finance`reports`to`the`chair`of`the`board.
the`chief`executive`officer`reports`to`the`president.
the`controller`reports`to`the`chief`financial`officer.
the`treasurer`reports`to`the`president.
the`chief`operations`officer`reports`to`the`vice`president`of`production.
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Difficulty`:
`1`Basic
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Management`organization`and`roles`
AACSB`:`Reflective`Thinking
Bloom's`:`Remember
Version`1 3
, Which`one`of`the`following`questions`involves`a`capital`budgeting`decision?
4)`
How`many`shares`of`stock`should`the`firm`issue?
Should`the`firm`purchase`a`new`machine`for`the`production`line?
Should`the`firm`borrow`money`to`acquire`new`equipment?
How`much`inventory`should`the`firm`keep`on`hand?
How`much`money`should`be`kept`in`the`checking`account?
Question`Details
Accessibility`:`Keyboard`Navigation`Accessi
bility`:`Screen`Reader`Compatible`Bloom's`:`
Understand
Learning`Objective`:`01-
01`Define`the`basic`types`of`financial`management`decisions`and`the`role`of`t`Section`:`1.1`Finance:`A`Q
uick`Look
Topic`:`Financial`management`decisions`Diff
iculty`:`2`Intermediate
AACSB`:`Reflective`Thinking
When`evaluating`the`timing`of`a`project’s`projected`cash`flows,`a`financial`manager`is`analyzin
g:
5)`
the`amount`of`each`expected`cash`flow.
only`the`start-up`costs`that`are`expected`to`require`cash`resources.
only`the`date`of`the`final`cash`flow`related`to`the`project.
the`amount`by`which`cash`receipts`are`expected`to`exceed`cash`outflows.
when`each`cash`flow`is`expected`to`occur.
Version`1 4
