Test Bank for Corporate Finance
n n n n n
13th Edition By Stephen Ross, Randolph Westerfield,
n n n n n n
Chapters 1 - 21, Complete
n n n n n
Version 1
n 1
,Chapter 1 n
Student name:_ n n
MULTIPLE CHOICE - Choose the one alternative that best completes the statement oranswers
n n n n n n n n n n n n n
the question.
n n
1) Generally, among those who report directlyto the are the treasurer and
n n n n n n n n n n
thecontroller of a corporation.
n n n n n
A) board of directors n n
B) chairperson of the board n n n
C) chief executive officer n n
D) president
E) chief financial officer n n
2) A typical chain of command in a corporation is described by which one of the
n n n n n n n n n n n n n n
followingstatements?
n n
A) The information systems manager reports to the treasurer.
n n n n n n n
B) The credit manager reports to the treasurer.
n n n n n n
C) The controller reports to the chief executive officer.
n n n n n n n
D) The tax manager reports to the treasurer.
n n n n n n
E) The capital expenditures manager reports to the controller.
n n n n n n n
3) Answering which one of the following questions involves making a capital
n n n n n n n n n n
budgetingdecision?
n n
Version 1 n 2
, A) How much debt should the firm borrow from a particular lender?
n n n n n n n n n n
B) Should the firm build a new production facility?
n n n n n n n
C) Should the firm issue new equityto pay for its growth goals?
n n n n n n n n n n n
D) How much inventory should the firm keep on hand?
n n n n n n n n
E) How much credit should the firm extend to a particular customer?
n n n n n n n n n n
4) Which one of the following statements is accurate?
n n n n n n n
A) Net working capital equals current assets plus current liabilities.
n n n n n n n n
B) Current liabilities are debts that must be repaid in 18 months or less.
n n n n n n n n n n n n
C) Current assets are assets with short lives, such as accounts receivable.
n n n n n n n n n n
D) Long-term debt is defined as a residual claim on a firm’s assets. n n n n n n n n n n n
E) Tangible assets are fixed assets such as patents. n n n n n n n
5) Among the typical responsibilities of the corporate controller is:
n n n n n n n n
A) capital expenditures management. n n
B) cash management.
n
C) tax reporting.
n
D) financial planning. n
E) credit management. n
6) n is typically the responsibility of the corporate treasurer.
n n n n n n n
A) Financial planning n
B) Cost accounting
n
C) Tax reporting
n
D) Information systems n
E) Financial accounting n
7) A firm’s
n define(s) its capital structure. n n n
Version 1
n 3
, A) mixture of various types of production equipment
n n n n n n
B) investment selections for its excess cash reserves n n n n n n
C) combination of cash and cash equivalents n n n n n
D) combination of accounts appearing on the left side of its balance sheet n n n n n n n n n n n
E) proportions of financing from debt and equity n n n n n n
8) The focus of short-term finance is on:
n n n n n n
A) the timing of cash flows.
n n n n
B) acquiring and selling fixed assets. n n n n
C) financing long-termprojects. n n
D) capital budgeting. n
E) issuing additional shares of common stock.
n n n n n
9) Net working capital includes:
n n n
A) copyrights.
B) manufacturing equipment. n
C) common stock. n
D) long-term debt. n
E) inventory.
10) n is defined as planning and managing a firm’s long-term assets.
n n n n n n n n n
A) Working capital management n n
B) Cash management
n
C) Cost accounting management
n n
D) Capital budgeting n
E) Capital structure management
n n
11) An amount the firms owes, which it must repaywithin twelve months, is called a(n):
n n n n n n n n n n n n n n
Version 1
n 4
n n n n n
13th Edition By Stephen Ross, Randolph Westerfield,
n n n n n n
Chapters 1 - 21, Complete
n n n n n
Version 1
n 1
,Chapter 1 n
Student name:_ n n
MULTIPLE CHOICE - Choose the one alternative that best completes the statement oranswers
n n n n n n n n n n n n n
the question.
n n
1) Generally, among those who report directlyto the are the treasurer and
n n n n n n n n n n
thecontroller of a corporation.
n n n n n
A) board of directors n n
B) chairperson of the board n n n
C) chief executive officer n n
D) president
E) chief financial officer n n
2) A typical chain of command in a corporation is described by which one of the
n n n n n n n n n n n n n n
followingstatements?
n n
A) The information systems manager reports to the treasurer.
n n n n n n n
B) The credit manager reports to the treasurer.
n n n n n n
C) The controller reports to the chief executive officer.
n n n n n n n
D) The tax manager reports to the treasurer.
n n n n n n
E) The capital expenditures manager reports to the controller.
n n n n n n n
3) Answering which one of the following questions involves making a capital
n n n n n n n n n n
budgetingdecision?
n n
Version 1 n 2
, A) How much debt should the firm borrow from a particular lender?
n n n n n n n n n n
B) Should the firm build a new production facility?
n n n n n n n
C) Should the firm issue new equityto pay for its growth goals?
n n n n n n n n n n n
D) How much inventory should the firm keep on hand?
n n n n n n n n
E) How much credit should the firm extend to a particular customer?
n n n n n n n n n n
4) Which one of the following statements is accurate?
n n n n n n n
A) Net working capital equals current assets plus current liabilities.
n n n n n n n n
B) Current liabilities are debts that must be repaid in 18 months or less.
n n n n n n n n n n n n
C) Current assets are assets with short lives, such as accounts receivable.
n n n n n n n n n n
D) Long-term debt is defined as a residual claim on a firm’s assets. n n n n n n n n n n n
E) Tangible assets are fixed assets such as patents. n n n n n n n
5) Among the typical responsibilities of the corporate controller is:
n n n n n n n n
A) capital expenditures management. n n
B) cash management.
n
C) tax reporting.
n
D) financial planning. n
E) credit management. n
6) n is typically the responsibility of the corporate treasurer.
n n n n n n n
A) Financial planning n
B) Cost accounting
n
C) Tax reporting
n
D) Information systems n
E) Financial accounting n
7) A firm’s
n define(s) its capital structure. n n n
Version 1
n 3
, A) mixture of various types of production equipment
n n n n n n
B) investment selections for its excess cash reserves n n n n n n
C) combination of cash and cash equivalents n n n n n
D) combination of accounts appearing on the left side of its balance sheet n n n n n n n n n n n
E) proportions of financing from debt and equity n n n n n n
8) The focus of short-term finance is on:
n n n n n n
A) the timing of cash flows.
n n n n
B) acquiring and selling fixed assets. n n n n
C) financing long-termprojects. n n
D) capital budgeting. n
E) issuing additional shares of common stock.
n n n n n
9) Net working capital includes:
n n n
A) copyrights.
B) manufacturing equipment. n
C) common stock. n
D) long-term debt. n
E) inventory.
10) n is defined as planning and managing a firm’s long-term assets.
n n n n n n n n n
A) Working capital management n n
B) Cash management
n
C) Cost accounting management
n n
D) Capital budgeting n
E) Capital structure management
n n
11) An amount the firms owes, which it must repaywithin twelve months, is called a(n):
n n n n n n n n n n n n n n
Version 1
n 4
