Test Bank for Corporate Finance
m m m m m
13th Edition By Stephen Ross, Randolph Westerfield,
m m m m m m
m Chapters 1 - 21, Complete
m m m m
Version 1 1
,Chapter 1 m
Student name:_
m m
MULTIPLE mCHOICE m- mChoose mthe mone malternative mthat mbest mcompletes mthe mstatement mor
answers mthe mquestion.
m
1) Generally, mamong mthose mwho mreport mdirectly mto mthe are mthe mtreasurer mand
mthem
controller mof ma mcorporation.
A) board mof mdirectors
B) chairperson mof mthe mboard
C) chief mexecutive mofficer
D) president
E) chief mfinancial mofficer
2) A mtypical mchain mof mcommand min ma mcorporation mis mdescribed mby mwhich mone mof mthe
m followingmstatements?
A) The minformation msystems mmanager mreports mto mthe mtreasurer.
B) The mcredit mmanager mreports mto mthe mtreasurer.
C) The mcontroller mreports mto mthe mchief mexecutive mofficer.
D) The mtax mmanager mreports mto mthe mtreasurer.
E) The mcapital mexpenditures mmanager mreports mto mthe mcontroller.
3) Answering mwhich mone mof mthe mfollowing mquestions minvolves mmaking ma mcapital
mbudgetingm
decision?
Version 1 2
, A) How mmuch mdebt mshould mthe mfirm mborrow mfrom ma mparticular mlender?
B) Should mthe mfirm mbuild ma mnew mproduction mfacility?
C) Should mthe mfirm missue mnew mequity mto mpay mfor mits mgrowth mgoals?
D) How mmuch minventory mshould mthe mfirm mkeep mon mhand?
E) How mmuch mcredit mshould mthe mfirm mextend mto ma mparticular mcustomer?
4) Which mone mof mthe mfollowing mstatements mis maccurate?
A) Net mworking mcapital mequals mcurrent massets mplus mcurrent mliabilities.
B) Current mliabilities mare mdebts mthat mmust mbe mrepaid min m18 mmonths mor mless.
C) Current massets mare massets mwith mshort mlives, msuch mas maccounts mreceivable.
D) Long-term mdebt m is mdefined mas ma mresidual mclaim mon ma mfirm’s massets.
E) Tangible massets mare mfixed massets msuch mas mpatents.
5) Among mthe mtypical mresponsibilities mof mthe mcorporate mcontroller mis:
A) capital mexpenditures mmanagement.
B) cash mmanagement.
C) tax mreporting.
D) financial mplanning.
E) credit mmanagement.
6) m is mtypically mthe mresponsibility mof mthe mcorporate mtreasurer.
A) Financial mplanning
B) Cost maccounting
C) Tax mreporting
D) Information msystems
E) Financial maccounting
7) A mfirm’s define(s) mits mcapital mstructure.
Version 1 3
, A) mixture mof mvarious mtypes mof mproduction mequipment
B) investment mselections mfor mits mexcess mcash mreserves
C) combination mof mcash mand mcash mequivalents
D) combination mof maccounts mappearing mon mthe mleft mside mof mits mbalance msheet
E) proportions mof mfinancing mfrom mdebt mand mequity
8) The mfocus mof mshort-term mfinance mis mon:
A) the mtiming mof mcash mflows.
B) acquiring mand mselling mfixed massets.
C) financing mlong-term mprojects.
D) capital mbudgeting.
E) issuing madditional mshares mof mcommon mstock.
9) Net mworking mcapital mincludes:
A) copyrights.
B) manufacturing mequipment.
C) common mstock.
D) long-term mdebt.
E) inventory.
10) m is mdefined mas mplanning mand mmanaging ma mfirm’s mlong-term massets.
A) Working mcapital mmanagement
B) Cash mmanagement
C) Cost maccounting mmanagement
D) Capital mbudgeting
E) Capital mstructure mmanagement
11) An mamount mthe mfirms mowes, mwhich mit mmust mrepay mwithin mtwelve mmonths, mis mcalled ma(n):
Version 1 4
m m m m m
13th Edition By Stephen Ross, Randolph Westerfield,
m m m m m m
m Chapters 1 - 21, Complete
m m m m
Version 1 1
,Chapter 1 m
Student name:_
m m
MULTIPLE mCHOICE m- mChoose mthe mone malternative mthat mbest mcompletes mthe mstatement mor
answers mthe mquestion.
m
1) Generally, mamong mthose mwho mreport mdirectly mto mthe are mthe mtreasurer mand
mthem
controller mof ma mcorporation.
A) board mof mdirectors
B) chairperson mof mthe mboard
C) chief mexecutive mofficer
D) president
E) chief mfinancial mofficer
2) A mtypical mchain mof mcommand min ma mcorporation mis mdescribed mby mwhich mone mof mthe
m followingmstatements?
A) The minformation msystems mmanager mreports mto mthe mtreasurer.
B) The mcredit mmanager mreports mto mthe mtreasurer.
C) The mcontroller mreports mto mthe mchief mexecutive mofficer.
D) The mtax mmanager mreports mto mthe mtreasurer.
E) The mcapital mexpenditures mmanager mreports mto mthe mcontroller.
3) Answering mwhich mone mof mthe mfollowing mquestions minvolves mmaking ma mcapital
mbudgetingm
decision?
Version 1 2
, A) How mmuch mdebt mshould mthe mfirm mborrow mfrom ma mparticular mlender?
B) Should mthe mfirm mbuild ma mnew mproduction mfacility?
C) Should mthe mfirm missue mnew mequity mto mpay mfor mits mgrowth mgoals?
D) How mmuch minventory mshould mthe mfirm mkeep mon mhand?
E) How mmuch mcredit mshould mthe mfirm mextend mto ma mparticular mcustomer?
4) Which mone mof mthe mfollowing mstatements mis maccurate?
A) Net mworking mcapital mequals mcurrent massets mplus mcurrent mliabilities.
B) Current mliabilities mare mdebts mthat mmust mbe mrepaid min m18 mmonths mor mless.
C) Current massets mare massets mwith mshort mlives, msuch mas maccounts mreceivable.
D) Long-term mdebt m is mdefined mas ma mresidual mclaim mon ma mfirm’s massets.
E) Tangible massets mare mfixed massets msuch mas mpatents.
5) Among mthe mtypical mresponsibilities mof mthe mcorporate mcontroller mis:
A) capital mexpenditures mmanagement.
B) cash mmanagement.
C) tax mreporting.
D) financial mplanning.
E) credit mmanagement.
6) m is mtypically mthe mresponsibility mof mthe mcorporate mtreasurer.
A) Financial mplanning
B) Cost maccounting
C) Tax mreporting
D) Information msystems
E) Financial maccounting
7) A mfirm’s define(s) mits mcapital mstructure.
Version 1 3
, A) mixture mof mvarious mtypes mof mproduction mequipment
B) investment mselections mfor mits mexcess mcash mreserves
C) combination mof mcash mand mcash mequivalents
D) combination mof maccounts mappearing mon mthe mleft mside mof mits mbalance msheet
E) proportions mof mfinancing mfrom mdebt mand mequity
8) The mfocus mof mshort-term mfinance mis mon:
A) the mtiming mof mcash mflows.
B) acquiring mand mselling mfixed massets.
C) financing mlong-term mprojects.
D) capital mbudgeting.
E) issuing madditional mshares mof mcommon mstock.
9) Net mworking mcapital mincludes:
A) copyrights.
B) manufacturing mequipment.
C) common mstock.
D) long-term mdebt.
E) inventory.
10) m is mdefined mas mplanning mand mmanaging ma mfirm’s mlong-term massets.
A) Working mcapital mmanagement
B) Cash mmanagement
C) Cost maccounting mmanagement
D) Capital mbudgeting
E) Capital mstructure mmanagement
11) An mamount mthe mfirms mowes, mwhich mit mmust mrepay mwithin mtwelve mmonths, mis mcalled ma(n):
Version 1 4
