Test Bank — Fundamentals of Corporate Finance, 13th Edition — Stephen A. Ross, Randolph Westerfield & Bradford D. Jordan — Latest Update 2025/2026 — (All Chapters Covered 1–27)

Test Bank for
Fundamentals of Corporate Finance, 13th Edition Ross
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Chapter 1-27 Answers are at the end of Each chapter

Chapter 1
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Student name:__________
1) The controller, rather than the treasurer, is typically responsible for which one of the
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following functions?

1) ______
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A) Depositing cash receipts
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B) Processing cost reports
C) Analyzing equipment purchases
D) Approving credit for a customer
N
E) Paying a vendor
O

Question Details
Accessibility : Keyboard Navigation
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Accessibility : Screen Reader Compatible
Difficulty : 1 Basic
Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
Section : 1.1 Finance: A Quick Look
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Topic : Management organization and roles
AACSB : Reflective Thinking
Bloom's : Remember
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2) Usually, the treasurer of a corporation reports directly to the:
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2) ______




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, A) board of directors.
B) chair of the board.
C) chief executive officer.
D) president.
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E) vice president of finance.
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Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 1 Basic
Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
C
Section : 1.1 Finance: A Quick Look
Topic : Management organization and roles
AACSB : Reflective Thinking
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Bloom's : Remember
N

3) In a typical corporate organizational structure:
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3) ______
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A) the vice president of finance reports to the chair of the board.
B) the chief executive officer reports to the president.
C) the controller reports to the chief financial officer.
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D) the treasurer reports to the president.
E) the chief operations officer reports to the vice president of production.
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Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Difficulty : 1 Basic
U
Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
Section : 1.1 Finance: A Quick Look
Topic : Management organization and roles
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AACSB : Reflective Thinking
Bloom's : Remember




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, 4) Which one of the following questions involves a capital budgeting decision?
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4) ______


A) How many shares of stock should the firm issue?
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B) Should the firm purchase a new machine for the production line?
C) Should the firm borrow money to acquire new equipment?
D) How much inventory should the firm keep on hand?
E) How much money should be kept in the checking account?
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Question Details
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Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
N
Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
Section : 1.1 Finance: A Quick Look
Topic : Financial management decisions
N
Difficulty : 2 Intermediate
AACSB : Reflective Thinking
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5) When evaluating the timing of a project’s projected cash flows, a financial manager is
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analyzing:
5) ______
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A) the amount of each expected cash flow.
B) only the start-up costs that are expected to require cash resources.
C) only the date of the final cash flow related to the project.
D) the amount by which cash receipts are expected to exceed cash outflows.
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E) when each cash flow is expected to occur.
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, Question Details
Accessibility : Keyboard Navigation
Accessibility : Screen Reader Compatible
Bloom's : Understand
Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
M
Section : 1.1 Finance: A Quick Look
Topic : Financial management decisions
Difficulty : 2 Intermediate
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AACSB : Reflective Thinking




6) Which one of the following questions involves a capital structure decision?
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6) ______
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A) Which one of two project proposals should the firm implement?
B) How should the firm allocate its limited available funds among acceptable projects?
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C) How much funding should be allocated to financing customer purchases of a new
product?
D) How much debt should the firm incur to fund a project?
N
E) How much inventory will be needed to support a project?
O
Question Details
Accessibility : Keyboard Navigation
IS
Accessibility : Screen Reader Compatible
Bloom's : Understand
Learning Objective : 01-01 Define the basic types of financial management decisions and the role of t
Section : 1.1 Finance: A Quick Look
SE
Topic : Financial management decisions
Difficulty : 2 Intermediate
AACSB : Reflective Thinking
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7) Determining the number of shares of stock to issue is an example of a ______ decision.

7) ______
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