Test bank for corporate finance 13th stephen ross randolph westerfield jeffrey jaffe

Test Bank for Corporate Finance
b b b b b




13th Edition By Stephen Ross, Randolph Westerfield,
b b b b b b




b Chapters 1 - 21, Complete
b b b b




Version 1
b 1

,Chapter 1 b




Student name:_
b b




MULTIPLE CHOICE - Choose the one alternative that best completes the statement oranswers
b b b b b b b b b b b b b




the question.
b b




1) Generally, among those who report directly to the
b are the treasurer and the b b b b b b b b b b




controller of a corporation.
b b b b




A) board of directors b b




B) chairperson of the board b b b




C) chief executive officer
b b




D) president
E) chief financial officer
b b




2) A typical chain of command in a corporation is described by which one of the following
b b b b b b b b b b b b b b b




statements?
b




A) The information systems manager reports to the treasurer.
b b b b b b b




B) The credit manager reports to the treasurer.
b b b b b b




C) The controller reports to the chief executive officer.
b b b b b b b




D) The tax manager reports to the treasurer.
b b b b b b




E) The capital expenditures manager reports to the controller.
b b b b b b b




3) Answering which one of the following questions involves making a capital budgeting
b b b b b b b b b b b




decision?
b




Version 1
b 2

, A) How much debt should the firm borrow from a particular lender?
b b b b b b b b b b




B) Should the firm build a new production facility?
b b b b b b b




C) Should the firm issue new equity to pay for its growth goals?
b b b b b b b b b b b




D) How much inventory should the firm keep on hand?
b b b b b b b b




E) How much credit should the firm extend to a particular customer?
b b b b b b b b b b




4) Which one of the following statements is accurate?
b b b b b b b




A) Net working capital equals current assets plus current liabilities.
b b b b b b b b




B) Current liabilities are debts that must be repaid in 18 months or less.
b b b b b b b b b b b b




C) Current assets are assets with short lives, such as accounts receivable.
b b b b b b b b b b




D) Long-term debt is defined as a residual claim on a firm’s assets. b b b b b b b b b b b




E) Tangible assets are fixed assets such as patents. b b b b b b b




5) Among the typical responsibilities of the corporate controller is:
b b b b b b b b




A) capital expenditures management. b b




B) cash management.
b




C) tax reporting.
b




D) financial planning. b




E) credit management. b




6) b is typically the responsibility of the corporate treasurer.
b b b b b b b




A) Financial planning b




B) Cost accounting
b




C) Tax reporting
b




D) Information systems b




E) Financial accounting b




7) A firm’s
b define(s) its capital structure. b b b




Version 1
b 3

, A) mixture of various types of production equipment
b b b b b b




B) investment selections for its excess cash reserves b b b b b b




C) combination of cash and cash equivalents b b b b b




D) combination of accounts appearing on the left side of its balance sheet b b b b b b b b b b b




E) proportions of financing from debt and equity b b b b b b




8) The focus of short-term finance is on:
b b b b b b




A) the timing of cash flows.
b b b b




B) acquiring and selling fixed assets. b b b b




C) financing long-term projects. b b




D) capital budgeting. b




E) issuing additional shares of common stock.
b b b b b




9) Net working capital includes:
b b b




A) copyrights.
B) manufacturing equipment. b




C) common stock. b




D) long-term debt. b




E) inventory.



10) b is defined as planning and managing a firm’s long-term assets.
b b b b b b b b b




A) Working capital management b b




B) Cash management
b




C) Cost accounting management
b b




D) Capital budgeting b




E) Capital structure management
b b




11) An amount the firms owes, which it must repay within twelve months, is called a(n):
b b b b b b b b b b b b b b




Version 1
b 4