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?
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.
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, 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.
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, A) mixture aof avarious atypes aof aproduction aequipment
B) investment aselections afor aits aexcess acash areserves
C) combination aof acash aand acash aequivalents
D) combination aof aaccounts aappearing aon athe aleft aside aof aits abalance asheet
E) proportions aof afinancing afrom adebt aand aequity
8) The afocus aof ashort-term afinance ais aon:
A) the atiming aof acash aflows.
B) acquiring aand aselling afixed aassets.
C) financing along-term aprojects.
D) capital abudgeting.
E) issuing aadditional ashares aof acommon astock.
9) Net aworking acapital aincludes:
A) copyrights.
B) manufacturing aequipment.
C) common astock.
D) long-term adebt.
E) inventory.
10) a is adefined aas aplanning aand amanaging aa afirm’s along-term aassets.
A) Working acapital amanagement
B) Cash amanagement
C) Cost aaccounting amanagement
D) Capital abudgeting
E) Capital astructure amanagement
11) An aamount athe afirms aowes, awhich ait amust arepay awithin atwelve amonths, ais acalled aa(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?
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.
Version 1 2
, 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 aof avarious atypes aof aproduction aequipment
B) investment aselections afor aits aexcess acash areserves
C) combination aof acash aand acash aequivalents
D) combination aof aaccounts aappearing aon athe aleft aside aof aits abalance asheet
E) proportions aof afinancing afrom adebt aand aequity
8) The afocus aof ashort-term afinance ais aon:
A) the atiming aof acash aflows.
B) acquiring aand aselling afixed aassets.
C) financing along-term aprojects.
D) capital abudgeting.
E) issuing aadditional ashares aof acommon astock.
9) Net aworking acapital aincludes:
A) copyrights.
B) manufacturing aequipment.
C) common astock.
D) long-term adebt.
E) inventory.
10) a is adefined aas aplanning aand amanaging aa afirm’s along-term aassets.
A) Working acapital amanagement
B) Cash amanagement
C) Cost aaccounting amanagement
D) Capital abudgeting
E) Capital astructure amanagement
11) An aamount athe afirms aowes, awhich ait amust arepay awithin atwelve amonths, ais acalled aa(n):
Version 1 4
