Strayer UniversityFINANCE 11 m m
Corporate Finance 11th Edition – Test Bank
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Sample Questions m
Chapter 01m
1 Which one of these is a correct definition?
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.
A. Netmworkingmcapitalmequalsmcurrentmassetsmplusmcurrentmliabilities.
, B. Currentmliabilitiesmare mdebtsmthatmmustmbe mrepaidminm18mmonthsmormless.
C. Currentmassetsmare massetsmwithmshortmlives,msuchmasminventory.
D. Long-termmdebtmismdefinedmasmamresidualmclaimmonmamfirm’smassets.
E. Tangible massetsmare mfixedmassetsmsuchmasmpatents.
The corporate controller is generally responsible for which one of these f
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unctions?
A. capitalmexpenditures
B. cashmmanagement
2
.
C. tax mreporting
D. financialmplanning
E. creditmmanagement
The corporate treasurer oversees which one of these areas?
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3
.
A. financialmplanning
, B. costm accounting
C. tax mreporting
D. informationmsystems
E. financialmaccounting
A firm’s capital structure refers to the firm’s:
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A. mixture mofmvariousmtypesmofmproductionmequipment.
B. investmentmselectionsmformitsmexcessmcashmreserves.
4
.
C. combinationmofmcashmandmcashmequivalents.
D. combinationmofmaccountsmappearingmonmthe mleftmside mofmitsmbalance msheet.
E. proportionsmofmfinancingmfrommcurrentmandmlong-termmdebtmandmequity.
5 Short-term finance deals with:
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.
, A. the mtimingmofmcashmflows.
B. acquiringmandmsellingmfixedmassets.
C. financingmlong-termmprojects.
D. capitalmbudgeting.
E. issuingmadditionalmsharesmofmcommonmstock.
Which one of these best fits the description of an agency cost?
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A. increasingmthe mdividendmpaymentsmpermshare
B. the mbenefitsmreceivedmfrommreducingmproductionmcostsmpermunit
6
.
C. the mpaymentmof mcorporate mincome mtaxes
D. the mpaymentmrequiredmformanmoutside mauditmofmthe mfirm
E. the mpaymentmof minterestmonmamfirm’smdebts
Corporate Finance 11th Edition – Test Bank
m m m m m m
Sample Questions m
Chapter 01m
1 Which one of these is a correct definition?
m m m m m m m m
.
A. Netmworkingmcapitalmequalsmcurrentmassetsmplusmcurrentmliabilities.
, B. Currentmliabilitiesmare mdebtsmthatmmustmbe mrepaidminm18mmonthsmormless.
C. Currentmassetsmare massetsmwithmshortmlives,msuchmasminventory.
D. Long-termmdebtmismdefinedmasmamresidualmclaimmonmamfirm’smassets.
E. Tangible massetsmare mfixedmassetsmsuchmasmpatents.
The corporate controller is generally responsible for which one of these f
m m m m m m m m m m m
unctions?
A. capitalmexpenditures
B. cashmmanagement
2
.
C. tax mreporting
D. financialmplanning
E. creditmmanagement
The corporate treasurer oversees which one of these areas?
m m m m m m m m
3
.
A. financialmplanning
, B. costm accounting
C. tax mreporting
D. informationmsystems
E. financialmaccounting
A firm’s capital structure refers to the firm’s:
m m m m m m m
A. mixture mofmvariousmtypesmofmproductionmequipment.
B. investmentmselectionsmformitsmexcessmcashmreserves.
4
.
C. combinationmofmcashmandmcashmequivalents.
D. combinationmofmaccountsmappearingmonmthe mleftmside mofmitsmbalance msheet.
E. proportionsmofmfinancingmfrommcurrentmandmlong-termmdebtmandmequity.
5 Short-term finance deals with:
m m m m
.
, A. the mtimingmofmcashmflows.
B. acquiringmandmsellingmfixedmassets.
C. financingmlong-termmprojects.
D. capitalmbudgeting.
E. issuingmadditionalmsharesmofmcommonmstock.
Which one of these best fits the description of an agency cost?
m m m m m m m m m m m
A. increasingmthe mdividendmpaymentsmpermshare
B. the mbenefitsmreceivedmfrommreducingmproductionmcostsmpermunit
6
.
C. the mpaymentmof mcorporate mincome mtaxes
D. the mpaymentmrequiredmformanmoutside mauditmofmthe mfirm
E. the mpaymentmof minterestmonmamfirm’smdebts
