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