TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Westerfield, Verified Chapters 1 - 31, Complete Newest Version

TEST BANK cf




Corporate Finance 13th Edition
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By Stephen Ross, Randolph Westerfield,
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Chapters 1 - 21, Complete
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Version 1
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,Chapter1 cf




Studentname:_cf cf




MULTIPLE CHOICE - cf cf



Choose the one alternative that best completes thefstatement orfanswers the question.
cf cf cf cf cf cf cf cf cf cf


1) Generally, among those who report directlyto the cf cf cf cf cf cf



are the treasurer and thecontroller of a corporation.
cf cf cf cf cf cf cf




A) board of directors cf cf



B) chairpersonofthe board cf cf cf



C) chief executive officer cf cf


D) president
E) chief financial officer cf cf




2) Atypical chainfof command in a corporation is described by which one ofthe followingfsta te
cf cf cf cf cf cf cf cf cf cf cf cf cf cf cf



ments?

A) Thefinformation systems manager reports to the treasurer. cf cf cf cf cf cf


B) The credit managerfreportsto the treasurer.
cf cf cf cf



C) The controllerfreports to the chief executive officer.
cf cf cf cf cf cf



D) Theftax managerfreports to the treasurer.cf cf cf cf



E) The capital expenditures manager reportsto the controller.
cf cf cf cf cf cf




3) Answering which one of the following questions involves making a capital budgetingfde c
cf cf cf cf cf cf cf cf cf cf cf cf



ision?




Version 1
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, A) Howmuchdebt should the firm borrow from a particular lender?
cf cf cf cf cf cf cf cf cf cf



B) Shouldthe firm build a newproduction facility?
cf cf cf cf cf cf cf



C) Should the firm issue new equityto payfor its growth goals?
cf cf cf cf cf cf cf cf cf


D) How much inventoryshould the firm keep on hand?
cf cf cf cf cf cf cf



E) Howmuch credit shouldfthe firmextend to afparticular customer?
cf cf cf cf cf cf cf




4) Whichone ofthe following statements is accurate?
cf cf cf cf cf cf cf




A) Net working capitalequals current assets plus current liabilities.
cf cf cf cf cf cf cf



B) Current liabilities are debts that must befrepaid in 18 months orfless.
cf cf cf cf cf cf cf cf cf cf



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



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


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




5) Among theftypical responsibilitiesfof the corporatefcontroller is:
cf cf cf cf cf




A) capital expenditures management. cf cf



B) cash management. cf


C) tax reporting.
cf



D) financial planning. cf


E) credit management. cf




6) is typically the responsibilityof the corporate treasurer.
cf cf cf cf cf cf




A) Financial planning cf


B) Cost accounting cf



C) Tax reporting
cf


D) Informationsystems
E) Financialaccounting



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




Version 1
cf 3

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



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



C) combination of cash and cash equivalents cf cf cf cf cf


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



E) proportions of financing fromdebt and equity cf cf cf cf cf




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




A) the timingfof cash flows.
cf cf cf



B) acquiringfand sellingffixed assets. cf cf



C) financingflong-termprojects.
D) capital budgeting. cf



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




9) Net working capital includes:
cf cf cf




A) copyrights.
B) manufacturing equipment. cf


C) common stock. cf



D) long-term debt. cf



E) inventory.



10) is defined as planning and managing a firm’s long-termassets.
cf cf cf cf cf cf cf cf




A) Workingfcapital management cf



B) Cash management
cf



C) Cost accounting management
cf cf


D) Capitalbudgeting
E) Capitalstructure management cf




11) Anamount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
cf cf cf cf cf cf cf cf cf cf cf cf




Version 1
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