Test Bank for Corporate Finance
t t t t t
13th Edition By Stephen Ross, Randolph Westerfield,
t t t t t t
t Chapters 1 - 21, Complete
t t t t
Version t1 1
,Chapter t1
Student tname:_ t
MULTIPLE tCHOICE t- tChoose tthe tone talternative tthat tbest tcompletes tthe tstatement
tortanswers tthe tquestion.
1) Generally, tamong tthose twho treport tdirectly tto tthe are tthe ttreasurer tand
tthetcontroller t of ta tcorporation.
A) board tof tdirectors
B) chairperson tof tthe tboard
C) chief texecutive tofficer
D) president
E) chief tfinancial tofficer
2) A ttypical tchain tof tcommand t in ta tcorporation tis tdescribed tby twhich tone tof tthe
t followingtstatements?
A) The tinformation tsystems tmanager treports tto tthe ttreasurer.
B) The tcredit t manager treports tto tthe ttreasurer.
C) The tcontroller treports tto tthe tchief texecutive tofficer.
D) The ttax tmanager treports tto tthe ttreasurer.
E) The tcapital texpenditures tmanager treports tto tthe tcontroller.
3) Answering twhich tone tof tthe tfollowing tquestions tinvolves tmaking ta tcapital
tbudgetingtdecision?
Version t1 2
, A) How tmuch tdebt tshould tthe tfirm tborrow tfrom ta tparticular t lender?
B) Should tthe tfirm tbuild ta tnew tproduction tfacility?
C) Should tthe tfirm tissue tnew tequity tto tpay tfor tits tgrowth tgoals?
D) How tmuch tinventory tshould tthe t firm tkeep ton thand?
E) How tmuch tcredit tshould tthe tfirm textend tto ta tparticular tcustomer?
4) Which tone tof tthe t following tstatements tis taccurate?
A) Net tworking tcapital tequals tcurrent tassets tplus tcurrent tliabilities.
B) Current tliabilities tare tdebts tthat tmust tbe trepaid tin t18 tmonths tor tless.
C) Current tassets tare tassets twith tshort tlives, tsuch tas taccounts treceivable.
D) Long-term tdebt t is tdefined tas ta tresidual tclaim ton ta tfirm’s tassets.
E) Tangible tassets tare tfixed tassets tsuch tas tpatents.
5) Among tthe ttypical tresponsibilities tof tthe tcorporate tcontroller tis:
A) capital texpenditures tmanagement.
B) cash tmanagement.
C) tax treporting.
D) financial tplanning.
E) credit tmanagement.
6) t is ttypically tthe tresponsibility tof tthe tcorporate ttreasurer.
A) Financial tplanning
B) Cost taccounting
C) Tax treporting
D) Information tsystems
E) Financial taccounting
7) A tfirm’s define(s) t its tcapital tstructure.
Version t1 3
, A) mixture tof tvarious ttypes tof tproduction tequipment
B) investment tselections tfor tits texcess tcash treserves
C) combination tof tcash tand tcash tequivalents
D) combination tof taccounts tappearing ton tthe tleft tside tof tits tbalance tsheet
E) proportions tof tfinancing tfrom tdebt tand tequity
8) The tfocus tof tshort-term tfinance tis ton:
A) the ttiming tof tcash tflows.
B) acquiring tand tselling tfixed tassets.
C) financing tlong-term tprojects.
D) capital tbudgeting.
E) issuing tadditional tshares tof tcommon tstock.
9) Net tworking tcapital tincludes:
A) copyrights.
B) manufacturing tequipment.
C) common tstock.
D) long-term tdebt.
E) inventory.
10) t is tdefined tas tplanning tand tmanaging ta tfirm’s tlong-term tassets.
A) Working tcapital tmanagement
B) Cash tmanagement
C) Cost taccounting tmanagement
D) Capital tbudgeting
E) Capital tstructure tmanagement
11) An tamount tthe tfirms towes, twhich tit tmust trepay twithin ttwelve tmonths, t is tcalled ta(n):
Version t1 4
t t t t t
13th Edition By Stephen Ross, Randolph Westerfield,
t t t t t t
t Chapters 1 - 21, Complete
t t t t
Version t1 1
,Chapter t1
Student tname:_ t
MULTIPLE tCHOICE t- tChoose tthe tone talternative tthat tbest tcompletes tthe tstatement
tortanswers tthe tquestion.
1) Generally, tamong tthose twho treport tdirectly tto tthe are tthe ttreasurer tand
tthetcontroller t of ta tcorporation.
A) board tof tdirectors
B) chairperson tof tthe tboard
C) chief texecutive tofficer
D) president
E) chief tfinancial tofficer
2) A ttypical tchain tof tcommand t in ta tcorporation tis tdescribed tby twhich tone tof tthe
t followingtstatements?
A) The tinformation tsystems tmanager treports tto tthe ttreasurer.
B) The tcredit t manager treports tto tthe ttreasurer.
C) The tcontroller treports tto tthe tchief texecutive tofficer.
D) The ttax tmanager treports tto tthe ttreasurer.
E) The tcapital texpenditures tmanager treports tto tthe tcontroller.
3) Answering twhich tone tof tthe tfollowing tquestions tinvolves tmaking ta tcapital
tbudgetingtdecision?
Version t1 2
, A) How tmuch tdebt tshould tthe tfirm tborrow tfrom ta tparticular t lender?
B) Should tthe tfirm tbuild ta tnew tproduction tfacility?
C) Should tthe tfirm tissue tnew tequity tto tpay tfor tits tgrowth tgoals?
D) How tmuch tinventory tshould tthe t firm tkeep ton thand?
E) How tmuch tcredit tshould tthe tfirm textend tto ta tparticular tcustomer?
4) Which tone tof tthe t following tstatements tis taccurate?
A) Net tworking tcapital tequals tcurrent tassets tplus tcurrent tliabilities.
B) Current tliabilities tare tdebts tthat tmust tbe trepaid tin t18 tmonths tor tless.
C) Current tassets tare tassets twith tshort tlives, tsuch tas taccounts treceivable.
D) Long-term tdebt t is tdefined tas ta tresidual tclaim ton ta tfirm’s tassets.
E) Tangible tassets tare tfixed tassets tsuch tas tpatents.
5) Among tthe ttypical tresponsibilities tof tthe tcorporate tcontroller tis:
A) capital texpenditures tmanagement.
B) cash tmanagement.
C) tax treporting.
D) financial tplanning.
E) credit tmanagement.
6) t is ttypically tthe tresponsibility tof tthe tcorporate ttreasurer.
A) Financial tplanning
B) Cost taccounting
C) Tax treporting
D) Information tsystems
E) Financial taccounting
7) A tfirm’s define(s) t its tcapital tstructure.
Version t1 3
, A) mixture tof tvarious ttypes tof tproduction tequipment
B) investment tselections tfor tits texcess tcash treserves
C) combination tof tcash tand tcash tequivalents
D) combination tof taccounts tappearing ton tthe tleft tside tof tits tbalance tsheet
E) proportions tof tfinancing tfrom tdebt tand tequity
8) The tfocus tof tshort-term tfinance tis ton:
A) the ttiming tof tcash tflows.
B) acquiring tand tselling tfixed tassets.
C) financing tlong-term tprojects.
D) capital tbudgeting.
E) issuing tadditional tshares tof tcommon tstock.
9) Net tworking tcapital tincludes:
A) copyrights.
B) manufacturing tequipment.
C) common tstock.
D) long-term tdebt.
E) inventory.
10) t is tdefined tas tplanning tand tmanaging ta tfirm’s tlong-term tassets.
A) Working tcapital tmanagement
B) Cash tmanagement
C) Cost taccounting tmanagement
D) Capital tbudgeting
E) Capital tstructure tmanagement
11) An tamount tthe tfirms towes, twhich tit tmust trepay twithin ttwelve tmonths, t is tcalled ta(n):
Version t1 4
