Test Bank for Corporate Finance
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Versionjr1 1
,Chapterjr1
Studentjrname:_jr
MULTIPLEjrCHOICEjr-
jrChoosejrthejronejralternativejrthatjrbestjrcompletesjrthejrstatementjrorra
j nswersjrthejrquestion.
1) Generally,jramongjrthosejrwhojrreportjrdirectlyjrtojrthe
arejrthejrtreasurerjrandjrtherjcontrollerjrofjrajrcorporation.
A) boardjrofjrdirectors
B) chairpersonjrofjrthejrboard
C) chiefjrexecutivejrofficer
D) president
E) chiefjrfinancialjrofficer
2) Ajrtypicaljrchainjrofjrcommandjrinjrajrcorporationjrisjrdescribedjrbyjrwhichjronejrofjrthejrfollowi
ngrjstatements?
A) Thejrinformationjrsystemsjrmanagerjrreportsjrtojrthejrtreasurer.
B) Thejrcreditjrmanagerjrreportsjrtojrthejrtreasurer.
C) Thejrcontrollerjrreportsjrtojrthejrchiefjrexecutivejrofficer.
D) Thejrtaxjrmanagerjrreportsjrtojrthejrtreasurer.
E) Thejrcapitaljrexpendituresjrmanagerjrreportsjrtojrthejrcontroller.
3) Answeringjrwhichjronejrofjrthejrfollowingjrquestionsjrinvolvesjrmakingjrajrcapitaljrbudgetin
grjdecision?
Versionjr1 2
, A) Howjrmuchjrdebtjrshouldjrthejrfirmjrborrowjrfromjrajrparticularjrlender?
B) Shouldjrthejrfirmjrbuildjrajrnewjrproductionjrfacility?
C) Shouldjrthejrfirmjrissuejrnewjrequityjrtojrpayjrforjritsjrgrowthjrgoals?
D) Howjrmuchjrinventoryjrshouldjrthejrfirmjrkeepjronjrhand?
E) Howjrmuchjrcreditjrshouldjrthejrfirmjrextendjrtojrajrparticularjrcustomer?
4) Whichjronejrofjrthejrfollowingjrstatementsjrisjraccurate?
A) Netjrworkingjrcapitaljrequalsjrcurrentjrassetsjrplusjrcurrentjrliabilities.
B) Currentjrliabilitiesjrarejrdebtsjrthatjrmustjrbejrrepaidjrinjr18jrmonthsjrorjrless.
C) Currentjrassetsjrarejrassetsjrwithjrshortjrlives,jrsuchjrasjraccountsjrreceivable.
D) Long-termjrdebtjr isjrdefinedjrasjrajrresidualjrclaimjronjrajrfirm’sjrassets.
E) Tangiblejrassetsjrarejrfixedjrassetsjrsuchjrasjrpatents.
5) Amongjrthejrtypicaljrresponsibilitiesjrofjrthejrcorporatejrcontrollerjris:
A) capitaljrexpendituresjrmanagement.
B) cashjrmanagement.
C) taxjrreporting.
D) financialjrplanning.
E) creditjrmanagement.
6) jr isjrtypicallyjrthejrresponsibilityjrofjrthejrcorporatejrtreasurer.
A) Financialjrplanning
B) Costjraccounting
C) Taxjrreporting
D) Informationjrsystems
E) Financialjraccounting
7) Ajrfirm’s define(s)jritsjrcapitaljrstructure.
Versionjr1 3
, A) mixturejrofjrvariousjrtypesjrofjrproductionjrequipment
B) investmentjrselectionsjrforjritsjrexcessjrcashjrreserves
C) combinationjrofjrcashjrandjrcashjrequivalents
D) combinationjrofjraccountsjrappearingjronjrthejrleftjrsidejrofjritsjrbalancejrsheet
E) proportionsjrofjrfinancingjrfromjrdebtjrandjrequity
8) Thejrfocusjrofjrshort-termjrfinancejrisjron:
A) thejrtimingjrofjrcashjrflows.
B) acquiringjrandjrsellingjrfixedjrassets.
C) financingjrlong-termjrprojects.
D) capitaljrbudgeting.
E) issuingjradditionaljrsharesjrofjrcommonjrstock.
9) Netjrworkingjrcapitaljrincludes:
A) copyrights.
B) manufacturingjrequipment.
C) commonjrstock.
D) long-termjrdebt.
E) inventory.
10) jr isjrdefinedjrasjrplanningjrandjrmanagingjrajrfirm’sjrlong-termjrassets.
A) Workingjrcapitaljrmanagement
B) Cashjrmanagement
C) Costjraccountingjrmanagement
D) Capitaljrbudgeting
E) Capitaljrstructurejrmanagement
11) Anjramountjrthejrfirmsjrowes,jrwhichjritjrmustjrrepayjrwithinjrtwelvejrmonths,jrisjrcalledjra(n):
Versionjr1 4
13th Edition By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Versionjr1 1
,Chapterjr1
Studentjrname:_jr
MULTIPLEjrCHOICEjr-
jrChoosejrthejronejralternativejrthatjrbestjrcompletesjrthejrstatementjrorra
j nswersjrthejrquestion.
1) Generally,jramongjrthosejrwhojrreportjrdirectlyjrtojrthe
arejrthejrtreasurerjrandjrtherjcontrollerjrofjrajrcorporation.
A) boardjrofjrdirectors
B) chairpersonjrofjrthejrboard
C) chiefjrexecutivejrofficer
D) president
E) chiefjrfinancialjrofficer
2) Ajrtypicaljrchainjrofjrcommandjrinjrajrcorporationjrisjrdescribedjrbyjrwhichjronejrofjrthejrfollowi
ngrjstatements?
A) Thejrinformationjrsystemsjrmanagerjrreportsjrtojrthejrtreasurer.
B) Thejrcreditjrmanagerjrreportsjrtojrthejrtreasurer.
C) Thejrcontrollerjrreportsjrtojrthejrchiefjrexecutivejrofficer.
D) Thejrtaxjrmanagerjrreportsjrtojrthejrtreasurer.
E) Thejrcapitaljrexpendituresjrmanagerjrreportsjrtojrthejrcontroller.
3) Answeringjrwhichjronejrofjrthejrfollowingjrquestionsjrinvolvesjrmakingjrajrcapitaljrbudgetin
grjdecision?
Versionjr1 2
, A) Howjrmuchjrdebtjrshouldjrthejrfirmjrborrowjrfromjrajrparticularjrlender?
B) Shouldjrthejrfirmjrbuildjrajrnewjrproductionjrfacility?
C) Shouldjrthejrfirmjrissuejrnewjrequityjrtojrpayjrforjritsjrgrowthjrgoals?
D) Howjrmuchjrinventoryjrshouldjrthejrfirmjrkeepjronjrhand?
E) Howjrmuchjrcreditjrshouldjrthejrfirmjrextendjrtojrajrparticularjrcustomer?
4) Whichjronejrofjrthejrfollowingjrstatementsjrisjraccurate?
A) Netjrworkingjrcapitaljrequalsjrcurrentjrassetsjrplusjrcurrentjrliabilities.
B) Currentjrliabilitiesjrarejrdebtsjrthatjrmustjrbejrrepaidjrinjr18jrmonthsjrorjrless.
C) Currentjrassetsjrarejrassetsjrwithjrshortjrlives,jrsuchjrasjraccountsjrreceivable.
D) Long-termjrdebtjr isjrdefinedjrasjrajrresidualjrclaimjronjrajrfirm’sjrassets.
E) Tangiblejrassetsjrarejrfixedjrassetsjrsuchjrasjrpatents.
5) Amongjrthejrtypicaljrresponsibilitiesjrofjrthejrcorporatejrcontrollerjris:
A) capitaljrexpendituresjrmanagement.
B) cashjrmanagement.
C) taxjrreporting.
D) financialjrplanning.
E) creditjrmanagement.
6) jr isjrtypicallyjrthejrresponsibilityjrofjrthejrcorporatejrtreasurer.
A) Financialjrplanning
B) Costjraccounting
C) Taxjrreporting
D) Informationjrsystems
E) Financialjraccounting
7) Ajrfirm’s define(s)jritsjrcapitaljrstructure.
Versionjr1 3
, A) mixturejrofjrvariousjrtypesjrofjrproductionjrequipment
B) investmentjrselectionsjrforjritsjrexcessjrcashjrreserves
C) combinationjrofjrcashjrandjrcashjrequivalents
D) combinationjrofjraccountsjrappearingjronjrthejrleftjrsidejrofjritsjrbalancejrsheet
E) proportionsjrofjrfinancingjrfromjrdebtjrandjrequity
8) Thejrfocusjrofjrshort-termjrfinancejrisjron:
A) thejrtimingjrofjrcashjrflows.
B) acquiringjrandjrsellingjrfixedjrassets.
C) financingjrlong-termjrprojects.
D) capitaljrbudgeting.
E) issuingjradditionaljrsharesjrofjrcommonjrstock.
9) Netjrworkingjrcapitaljrincludes:
A) copyrights.
B) manufacturingjrequipment.
C) commonjrstock.
D) long-termjrdebt.
E) inventory.
10) jr isjrdefinedjrasjrplanningjrandjrmanagingjrajrfirm’sjrlong-termjrassets.
A) Workingjrcapitaljrmanagement
B) Cashjrmanagement
C) Costjraccountingjrmanagement
D) Capitaljrbudgeting
E) Capitaljrstructurejrmanagement
11) Anjramountjrthejrfirmsjrowes,jrwhichjritjrmustjrrepayjrwithinjrtwelvejrmonths,jrisjrcalledjra(n):
Versionjr1 4
