TEST BANK FOR FUNDAMENTALS OF
CORPORATE FINANCE 10TH EDITION BY
STEPHEN ROSS, RANDOLPH
WESTERFIELD AND BRADFORD
JORDAN
,TABLE OF CONTENTS
PART 1: OVERVIEW OF CORPORATE FINANCE
1. Introduction to Corporate Finance
2. Financial Statements, Taxes, and Cash Flow
PART 2: FINANCIAL STATEMENTS AND LONG-TERM FINANCIAL
PLANNING
3. Working with Financial Statements
4. Long-Term Financial Planning and Growth
PART 3: VALUATION OF FUTURE CASH FLOWS
5. Introduction to Valuation: The Time Value of Money
6. Discounted Cash Flow Valuation
7. Interest Rates and Bond Valuation
8. Stock Valuation
PART 4: CAPITAL BUDGETING
9. Net Present Value and Other Investment Criteria
10. Making Capital Investment Decisions
11. Project Analysis and Evaluation
PART 5: RISK AND RETURN
12. Some Lessons from Capital Market History
13. Return, Risk, and the Security Market Line
PART 6: COST OF CAPITAL AND LONG-TERM FINANCIAL POLICY
14. Cost of Capital
15. Raising Capital
16. Financial Leverage and Capital Structure Policy
17. Dividends and Payout Policy
PART 7: SHORT-TERM FINANCIAL PLANNING AND MANAGEMENT
18. Short-Term Finance and Planning
19. Cash and Liquidity Management
20. Credit and Inventory Management
PART 8: TOPICS IN CORPORATE FINANCE
21. International Corporate Finance
22. Behavioral Finance Implications for Financial Management
23. Enterprise Risk Management
24. Options and Corporate Finance
25. Option Valuation
26. Mergers and Acquisitions
27. Leasing
,Student Name:_
1) Indicate Whether Each Of The Following Statements About Markets Is True Or False.
A) Financial Resources Can Be Provided To A Business By Investors.
B) Resource Owners Are The Businesses That Transform Resources Into Products
ThatSatisfy Consumer Desires.
C) Labor Resources Include Both The Physical And Intellectual Labor Of A
Business'sEmployees.
D) Businesses Purchase Their Resources From Resource Owners.
E) Consumers Are The Main Providers Of Resources In Any Market.
2) Indicate Whether Each Of The Following Statements About Accounting Information Is True Or
False.
A) Financial Accounting Is Primarily Intended To Satisfy The Information Needs Of
Internal Stakeholders.
B) Managerial Accounting Information Includes Financial And Nonfinancial
Information.
C) The Accounting Information Intended To Satisfy The Needs Of A Company's
Employees Is Managerial Accounting Information.
D) GAAP Requires That Companies Adhere To Financial Accounting Standards.
E) Managerial Accounting Information Is Usually Less Detailed Than Financial
Accounting Information.
3) Indicate Whether Each Of The Following Statements About Liabilities Is True Or False.
A) A Net Loss On The Income Statement Decreases Liabilities.
B) The Acquisition Of A Bank Loan Increases Both Assets And Liabilities.
C) The Accounting Equation Requires That Liabilities Be Equal To Stockholders’ Equity.
D) The Amount Of A Company's Liabilities Is Equal To The Difference Between Its
AssetsAnd Its Stockholders’ Equity.
E) Liabilities Are Reported On The Statement Of Cash Flows Of A Business.
, 4) Indicate Whether Each Of The Following Statements About Retained Earnings Is True Or False.
A) A Dividend Paid To Stockholders Decreases Retained Earnings.
B) Issuing Common Stock For Cash Increases Retained Earnings.
C) The Amount Of Net Income For A Period Must Equal Retained Earnings.
D) The Purchase Of A Truck Decreases Retained Earnings.
E) Net Income Increases Retained Earnings.
5) Indicate Whether Each Of The Following Statements About The Types Of Transactions Is
TrueOr False.
A) An Asset Source Transaction Increases Total Assets And Increases Claims To Assets.
B) The Issuance Of Stock To Owners For Cash Would Be An Example Of An
AssetExchange Transaction.
C) Purchasing Equipment For Cash Is An Example Of An Asset Use Transaction.
D) Paying A Dividend To Stockholders Is An Example Of An Asset Use Transaction.
E) Making A Payment On A Bank Loan Is An Example Of An Asset Exchange Transaction.
6) Indicate Whether Each Of The Following Statements About Financial Statements Is True
OrFalse.
A) A Cash Dividend Paid To Stockholders Is Reported In The Investing Activities Section
Of The Statement Of Cash Flows.
B) A Cash Dividend Paid To Stockholders Is Reported On The Statement Of Changes
InStockholders' Equity.
C) A Cash Dividend Paid To Stockholders Is Reported On The Income Statement.
D) The Balance Sheet Reports The Ending Balances Of Permanent Accounts As Of The
LastDay Of The Accounting Period.
E) Changes In Retained Earnings During The Accounting Period Are Reported On
TheIncome Statement.
CORPORATE FINANCE 10TH EDITION BY
STEPHEN ROSS, RANDOLPH
WESTERFIELD AND BRADFORD
JORDAN
,TABLE OF CONTENTS
PART 1: OVERVIEW OF CORPORATE FINANCE
1. Introduction to Corporate Finance
2. Financial Statements, Taxes, and Cash Flow
PART 2: FINANCIAL STATEMENTS AND LONG-TERM FINANCIAL
PLANNING
3. Working with Financial Statements
4. Long-Term Financial Planning and Growth
PART 3: VALUATION OF FUTURE CASH FLOWS
5. Introduction to Valuation: The Time Value of Money
6. Discounted Cash Flow Valuation
7. Interest Rates and Bond Valuation
8. Stock Valuation
PART 4: CAPITAL BUDGETING
9. Net Present Value and Other Investment Criteria
10. Making Capital Investment Decisions
11. Project Analysis and Evaluation
PART 5: RISK AND RETURN
12. Some Lessons from Capital Market History
13. Return, Risk, and the Security Market Line
PART 6: COST OF CAPITAL AND LONG-TERM FINANCIAL POLICY
14. Cost of Capital
15. Raising Capital
16. Financial Leverage and Capital Structure Policy
17. Dividends and Payout Policy
PART 7: SHORT-TERM FINANCIAL PLANNING AND MANAGEMENT
18. Short-Term Finance and Planning
19. Cash and Liquidity Management
20. Credit and Inventory Management
PART 8: TOPICS IN CORPORATE FINANCE
21. International Corporate Finance
22. Behavioral Finance Implications for Financial Management
23. Enterprise Risk Management
24. Options and Corporate Finance
25. Option Valuation
26. Mergers and Acquisitions
27. Leasing
,Student Name:_
1) Indicate Whether Each Of The Following Statements About Markets Is True Or False.
A) Financial Resources Can Be Provided To A Business By Investors.
B) Resource Owners Are The Businesses That Transform Resources Into Products
ThatSatisfy Consumer Desires.
C) Labor Resources Include Both The Physical And Intellectual Labor Of A
Business'sEmployees.
D) Businesses Purchase Their Resources From Resource Owners.
E) Consumers Are The Main Providers Of Resources In Any Market.
2) Indicate Whether Each Of The Following Statements About Accounting Information Is True Or
False.
A) Financial Accounting Is Primarily Intended To Satisfy The Information Needs Of
Internal Stakeholders.
B) Managerial Accounting Information Includes Financial And Nonfinancial
Information.
C) The Accounting Information Intended To Satisfy The Needs Of A Company's
Employees Is Managerial Accounting Information.
D) GAAP Requires That Companies Adhere To Financial Accounting Standards.
E) Managerial Accounting Information Is Usually Less Detailed Than Financial
Accounting Information.
3) Indicate Whether Each Of The Following Statements About Liabilities Is True Or False.
A) A Net Loss On The Income Statement Decreases Liabilities.
B) The Acquisition Of A Bank Loan Increases Both Assets And Liabilities.
C) The Accounting Equation Requires That Liabilities Be Equal To Stockholders’ Equity.
D) The Amount Of A Company's Liabilities Is Equal To The Difference Between Its
AssetsAnd Its Stockholders’ Equity.
E) Liabilities Are Reported On The Statement Of Cash Flows Of A Business.
, 4) Indicate Whether Each Of The Following Statements About Retained Earnings Is True Or False.
A) A Dividend Paid To Stockholders Decreases Retained Earnings.
B) Issuing Common Stock For Cash Increases Retained Earnings.
C) The Amount Of Net Income For A Period Must Equal Retained Earnings.
D) The Purchase Of A Truck Decreases Retained Earnings.
E) Net Income Increases Retained Earnings.
5) Indicate Whether Each Of The Following Statements About The Types Of Transactions Is
TrueOr False.
A) An Asset Source Transaction Increases Total Assets And Increases Claims To Assets.
B) The Issuance Of Stock To Owners For Cash Would Be An Example Of An
AssetExchange Transaction.
C) Purchasing Equipment For Cash Is An Example Of An Asset Use Transaction.
D) Paying A Dividend To Stockholders Is An Example Of An Asset Use Transaction.
E) Making A Payment On A Bank Loan Is An Example Of An Asset Exchange Transaction.
6) Indicate Whether Each Of The Following Statements About Financial Statements Is True
OrFalse.
A) A Cash Dividend Paid To Stockholders Is Reported In The Investing Activities Section
Of The Statement Of Cash Flows.
B) A Cash Dividend Paid To Stockholders Is Reported On The Statement Of Changes
InStockholders' Equity.
C) A Cash Dividend Paid To Stockholders Is Reported On The Income Statement.
D) The Balance Sheet Reports The Ending Balances Of Permanent Accounts As Of The
LastDay Of The Accounting Period.
E) Changes In Retained Earnings During The Accounting Period Are Reported On
TheIncome Statement.
