Test Bank for Corporate Finance, 13th Edition by Stephen Ross & Randolph Westerfield – Chapters 1–21 complete newest version updated 2025

Test Bank for Corporate Finance
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete




Version 1
SDF 1

,Chapter 1 SDF




Student name:_ SDF SDF




MULTIPLE CHOICE - SDF SDF




Choose the one alternative that best completes the statement oranswers the question.
SDF SDF SDF SDF SDF SDF SDF SDF SDF SDF F
SD SDF SDF




1) Generally, among those who report directlyto the SDF SDF SDF SD F SDF SDF SDF




are the treasurer and thecontroller ofa corporation.
SDF SDF SDF SDF SDF SD F SDF SDF




A) board of directors SDF SDF




B) chairperson ofthe board SDF SDF SDF




C) chiefexecutive officer SDF SDF




D) president
E) chief financialofficer SDF SDF




2) Atypicalchain ofcommand ina corporation is described bywhich one ofthe followingstatem
SDF SDF SDF SDF SD F SDF SDF SDF SDF SDF SDF SDF SDF SDF SD F SDF




ents?

A) The informationsystems manager reportsto the treasurer.
SDF SDF SD F SDF SDF SDF SDF




B) The credit manager reportsto the treasurer.
SDF SD F SDF SDF SDF SDF




C) The controller reportsto the chiefexecutive officer.
SDF SD F SDF SDF SDF SDF SDF




D) Thetax manager reportsto the treasurer.
SDF SDF SD F SDF SDF SDF




E) The capitalexpenditures manager reportsto the controller.
SDF SDF SD F SDF SDF SDF SDF




3) Answering whichone ofthe following questions involves making a capital budgetingdeci SDF SDF SDF SDF SD F SDF SDF SDF SDF SDF SDF SDF




sion?




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SDF 2

, A) How muchdebt should the firmborrow froma particular lender?
SDF DSF SD F SDF SD F SDF SDF SDF SDF SD F




B) Should the firm build a new production facility? SDF SD F SDF SDF SDF SDF SDF




C) Should the firm issue new equityto payfor its growth goals? SDF SD F SDF SDF SDF SDF SD F SDF SDF SDF SDF




D) How much inventoryshould the firm keep on hand?
SDF SDF SDF SDF SD F SDF SDF SDF




E) Howmuchcredit should the firmextend to a particular customer?
SDF SDF SD F SDF SDF SDF SDF SDF SDF S DF




4) Whichone ofthe following statements is accurate?
SDF SDF SDF SD F SDF SDF SDF




A) Net working capitalequals current assetsplus current liabilities.
SDF SDF SDF SDF SDF SDF SDF S DF




B) Current liabilities are debts that must be repaid in18 months or less.SD F SDF SDF SDF SDF SD F SDF SDF SDF SDF SDF SDF




C) Current assets areassets withshort lives, such as accounts receivable.SD F SDF SDF SDF SDF SDF SDF SDF SDF SDF




D) Long-termdebt is defined as a residualclaim on a firm’s assets. SDF SD F SDF SD F SDF SDF SDF SDF SDF SDF SDF




E) Tangible assets are fixed assets such as patents. SDF SDF SDF SDF SDF SDF SDF




5) Among the typical responsibilities ofthe corporatecontroller is:
SDF SDF SDF SDF SDF SDF SDF SD F




A) capitalexpenditures management. SDF SDF




B) cash management. SDF




C) taxreporting.
SDF




D) financialplanning. SDF




E) credit management. SDF




6) SD F is typically the responsibilityofthe corporatetreasurer.
SDF SDF SDF SDF SDF S DF SDF




A) Financialplanning SDF




B) Cost accounting SDF




C) Taxreporting SDF




D) Informationsystems SDF




E) Financialaccounting SDF




7) A firm’s SDF define(s) its capitalstructure. SD F SDF SDF




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, A) mixture ofvarious types ofproduction equipment SDF SDF SDF SDF SDF SDF




B) investment selections for itsexcess cashreserves SDF SDF SD F SDF SDF SDF




C) combination ofcash and cash equivalents SDF SDF SDF SD F SDF




D) combinationofaccounts appearing onthe left side of its balance sheet SDF SDF SDF SDF SDF SD F SD F SDF SDF SDF SDF




E) proportions of financing fromdebt and equity SDF SDF SD F SDF SD F SDF




8) The focus ofshort-term finance is on:
SD F SDF SDF SDF SD F SDF




A) the timing ofcash flows.
SDF SDF SDF SDF




B) acquiring and selling fixed assets. SDF SDF SDF SDF




C) financing long-termprojects. SD F SDF




D) capitalbudgeting. SDF




E) issuing additionalshares ofcommon stock.
SDF SDF SDF SDF SDF




9) Net working capital includes:
SDF SDF SDF




A) copyrights.
B) manufacturing equipment. SDF




C) common stock. SDF




D) long-termdebt. SDF




E) inventory.



10) SD F is defined as planning and managing a firm’s long-termassets.
SDF SDF SDF SDF SD F SDF SD F SDF SDF




A) Working capitalmanagement SDF SDF




B) Cashmanagement SDF




C) Cost accounting management
SDF SDF




D) Capitalbudgeting SDF




E) Capitalstructure management SDF SDF




11) Anamount the firms owes, which it must repaywithintwelve months, is called a(n):
SDF SDF SDF SDF SDF SDF SD F SD F SDF SDF SD F SD F SDF SDF




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