Test Bank for Corporate Finance
h h h h h
13th Edition By Stephen Ross, Randolph Westerfield,
h h h h h h
h Chapters 1 - 21, Complete
h h h h
Version 1
h1
,Chapter h1
Student hname:_ h
MULTIPLE hCHOICE h- hChoose hthe hone halternative hthat hbest hcompletes hthe hstatement hor
hanswers hthe hquestion.
1) Generally, hamong hthose hwho hreport hdirectly hto hthe are hthe htreasurer hand
hthehcontroller hof ha hcorporation.
A) board hof hdirectors
B) chairperson hof hthe hboard
C) chief hexecutive hofficer
D) president
E) chief hfinancial hofficer
2) A htypical hchain hof hcommand hin ha hcorporation his hdescribed hby hwhich hone hof hthe
hfollowinghstatements?
A) The hinformation hsystems hmanager hreports hto hthe htreasurer.
B) The hcredit hmanager hreports hto hthe htreasurer.
C) The hcontroller hreports hto hthe hchief hexecutive hofficer.
D) The htax hmanager hreports hto hthe htreasurer.
E) The hcapital hexpenditures hmanager hreports hto hthe hcontroller.
3) Answering hwhich hone hof hthe hfollowing hquestions hinvolves hmaking ha hcapital
hbudgetinghdecision?
Version 2
h1
, A) How hmuch hdebt hshould hthe hfirm hborrow hfrom ha hparticular hlender?
B) Should hthe hfirm hbuild ha hnew hproduction hfacility?
C) Should hthe hfirm hissue hnew hequity hto hpay hfor hits hgrowth hgoals?
D) How hmuch hinventory hshould hthe hfirm hkeep hon hhand?
E) How hmuch hcredit hshould hthe hfirm hextend hto ha hparticular hcustomer?
4) Which hone hof hthe hfollowing hstatements his haccurate?
A) Net hworking hcapital hequals hcurrent hassets hplus hcurrent hliabilities.
B) Current hliabilities hare hdebts hthat hmust hbe hrepaid hin h18 hmonths hor hless.
C) Current hassets hare hassets hwith hshort hlives, hsuch has haccounts hreceivable.
D) Long-term hdebt his hdefined has ha hresidual hclaim hon ha hfirm’s hassets.
E) Tangible hassets hare hfixed hassets hsuch has hpatents.
5) Among hthe htypical hresponsibilities hof hthe hcorporate hcontroller his:
A) capital hexpenditures hmanagement.
B) cash hmanagement.
C) tax hreporting.
D) financial hplanning.
E) credit hmanagement.
6) h is htypically hthe hresponsibility hof hthe hcorporate htreasurer.
A) Financial hplanning
B) Cost haccounting
C) Tax hreporting
D) Information hsystems
E) Financial haccounting
7) A hfirm’s define(s) hits hcapital hstructure.
Version 3
h1
, A) mixture hof hvarious htypes hof hproduction hequipment
B) investment hselections hfor hits hexcess hcash hreserves
C) combination hof hcash hand hcash hequivalents
D) combination hof haccounts happearing hon hthe hleft hside hof hits hbalance hsheet
E) proportions hof hfinancing hfrom hdebt hand hequity
8) The hfocus hof hshort-term hfinance his hon:
A) the htiming hof hcash hflows.
B) acquiring hand hselling hfixed hassets.
C) financing hlong-term hprojects.
D) capital hbudgeting.
E) issuing hadditional hshares hof hcommon hstock.
9) Net hworking hcapital hincludes:
A) copyrights.
B) manufacturing hequipment.
C) common hstock.
D) long-term hdebt.
E) inventory.
10) h is hdefined has hplanning hand hmanaging ha hfirm’s hlong-term hassets.
A) Working hcapital hmanagement
B) Cash hmanagement
C) Cost haccounting hmanagement
D) Capital hbudgeting
E) Capital hstructure hmanagement
11) An hamount hthe hfirms howes, hwhich hit hmust hrepay hwithin htwelve hmonths, his hcalled ha(n):
Version 4
h1
h h h h h
13th Edition By Stephen Ross, Randolph Westerfield,
h h h h h h
h Chapters 1 - 21, Complete
h h h h
Version 1
h1
,Chapter h1
Student hname:_ h
MULTIPLE hCHOICE h- hChoose hthe hone halternative hthat hbest hcompletes hthe hstatement hor
hanswers hthe hquestion.
1) Generally, hamong hthose hwho hreport hdirectly hto hthe are hthe htreasurer hand
hthehcontroller hof ha hcorporation.
A) board hof hdirectors
B) chairperson hof hthe hboard
C) chief hexecutive hofficer
D) president
E) chief hfinancial hofficer
2) A htypical hchain hof hcommand hin ha hcorporation his hdescribed hby hwhich hone hof hthe
hfollowinghstatements?
A) The hinformation hsystems hmanager hreports hto hthe htreasurer.
B) The hcredit hmanager hreports hto hthe htreasurer.
C) The hcontroller hreports hto hthe hchief hexecutive hofficer.
D) The htax hmanager hreports hto hthe htreasurer.
E) The hcapital hexpenditures hmanager hreports hto hthe hcontroller.
3) Answering hwhich hone hof hthe hfollowing hquestions hinvolves hmaking ha hcapital
hbudgetinghdecision?
Version 2
h1
, A) How hmuch hdebt hshould hthe hfirm hborrow hfrom ha hparticular hlender?
B) Should hthe hfirm hbuild ha hnew hproduction hfacility?
C) Should hthe hfirm hissue hnew hequity hto hpay hfor hits hgrowth hgoals?
D) How hmuch hinventory hshould hthe hfirm hkeep hon hhand?
E) How hmuch hcredit hshould hthe hfirm hextend hto ha hparticular hcustomer?
4) Which hone hof hthe hfollowing hstatements his haccurate?
A) Net hworking hcapital hequals hcurrent hassets hplus hcurrent hliabilities.
B) Current hliabilities hare hdebts hthat hmust hbe hrepaid hin h18 hmonths hor hless.
C) Current hassets hare hassets hwith hshort hlives, hsuch has haccounts hreceivable.
D) Long-term hdebt his hdefined has ha hresidual hclaim hon ha hfirm’s hassets.
E) Tangible hassets hare hfixed hassets hsuch has hpatents.
5) Among hthe htypical hresponsibilities hof hthe hcorporate hcontroller his:
A) capital hexpenditures hmanagement.
B) cash hmanagement.
C) tax hreporting.
D) financial hplanning.
E) credit hmanagement.
6) h is htypically hthe hresponsibility hof hthe hcorporate htreasurer.
A) Financial hplanning
B) Cost haccounting
C) Tax hreporting
D) Information hsystems
E) Financial haccounting
7) A hfirm’s define(s) hits hcapital hstructure.
Version 3
h1
, A) mixture hof hvarious htypes hof hproduction hequipment
B) investment hselections hfor hits hexcess hcash hreserves
C) combination hof hcash hand hcash hequivalents
D) combination hof haccounts happearing hon hthe hleft hside hof hits hbalance hsheet
E) proportions hof hfinancing hfrom hdebt hand hequity
8) The hfocus hof hshort-term hfinance his hon:
A) the htiming hof hcash hflows.
B) acquiring hand hselling hfixed hassets.
C) financing hlong-term hprojects.
D) capital hbudgeting.
E) issuing hadditional hshares hof hcommon hstock.
9) Net hworking hcapital hincludes:
A) copyrights.
B) manufacturing hequipment.
C) common hstock.
D) long-term hdebt.
E) inventory.
10) h is hdefined has hplanning hand hmanaging ha hfirm’s hlong-term hassets.
A) Working hcapital hmanagement
B) Cash hmanagement
C) Cost haccounting hmanagement
D) Capital hbudgeting
E) Capital hstructure hmanagement
11) An hamount hthe hfirms howes, hwhich hit hmust hrepay hwithin htwelve hmonths, his hcalled ha(n):
Version 4
h1
