Test Bank For Corporate Finance 12th Edition By Ross All (Chapter 1-27) Updated Version 2025 Complete Newest Edition Instant Download PDF

CorporatelFinance,l12el(Ross)
Chapterl1 IntroductionltolCorporatelFinance

1) Theltreasurerlandlthelcontrollerloflalcorporationlgenerallylreportltolthe:
A) boardlofldirectors.
B) chairmanloflthelboard.
C) chieflexecutivelofficer.
D) president.
E) chieflfinanciallofficer.

Answer:l ElDifficu
lty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:lManagementlorganizationlandlroleslBloom
's: Remember
AACSB:
ReflectivelThinkinglAcces
sibility:lKeyboardlNavigation

2) Whichloneloflthelfollowinglstatementslcorrectlyldepictslthelcommonlchainloflcommandlinlalcorp
oration?
A) Thelinformationlsystemslmanagerlreportsltoltheltreasurer.
B) Thelcreditlmanagerlreportsltoltheltreasurer.
C) Thelcontrollerlreportsltolthelchieflexecutivelofficer.
D) Theltaxlmanagerlreportsltoltheltreasurer.
E) Thelcapitallexpenditureslmanagerlreportsltolthelcontroller.

Answer:l BlDiffic
ulty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:lManagementlorganizationlandlroleslBloom
's: Remember
AACSB:
ReflectivelThinkinglAcces
sibility:lKeyboardlNavigation




1
Copyrightl©l2019lMcGraw-HilllEducation.lAlllrightslreserved.
NolreproductionlorldistributionlwithoutlthelpriorlwrittenlconsentloflMcGraw-HilllEducation.

,3) Whichloneloflthelfollowinglislalcapitallbudgetingldecision?
A) Determininglhowlmuchldebtlshouldlbelborrowedlfromlalparticularllender
B) Decidinglwhetherlorlnotlalnewlproductionlfacilitylshouldlbelbuilt
C) Decidinglwhenltolrepaylallong-termldebt
D) Determininglhowlmuchlinventoryltolkeeplonlhand
E) Decidinglhowlmuchlcreditltolgrantltolalparticularlcustomer

Answer:l BlDiffic
ulty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:l Capitallbudgeting
Bloom's:
UnderstandlAACSB
: ReflectivelThinking
Accessibility:l KeyboardlNavigation

4) Whichlonelofltheselislalcorrectldefinition?
A) Netlworkinglcapitallequalslcurrentlassetslpluslcurrentlliabilities.
B) Currentlliabilitieslareldebtslthatlmustlbelrepaidlinl18lmonthslorlless.
C) Currentlassetslarelassetslwithlshortllives,lsuchlaslaccountslreceivable.
D) Long-termldebtlisldefinedlaslalresiduallclaimlonlalfirm'slassets.
E) Tangiblelassetslarelfixedlassetslsuchlaslpatents.

Answer:lClDifficu
lty:l1lEasy
Section:l1.1lWhatlislCorporatelFinance?lTo
pic:lIntroductionltolcorporatelfinancelBloo
m's:l Remember
AACSB:lReflectivelThinkinglAccessi
bility:lKeyboardlNavigation

5) Thelcorporatelcontrollerlislgenerallylresponsiblelforlwhichloneloflthesel functions?
A) Capitallexpenditures
B) Cashlmanagement
C) Taxlreporting
D) Financiallplanning
E) Creditlmanagement

Answer:l ClDiffic
ulty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:lManagementlorganizationlandlroleslBloom
's: Remember
AACSB:
ReflectivelThinkinglAcces
sibility:lKeyboardlNavigation

2
Copyrightl©l2019lMcGraw-HilllEducation.lAlllrightslreserved.
NolreproductionlorldistributionlwithoutlthelpriorlwrittenlconsentloflMcGraw-HilllEducation.

,6) Thelcorporateltreasurerloverseeslwhichlonelofltheselareas?
A) Financiallplanning
B) Costlaccounting
C) Taxlreporting
D) Informationlsystems
E) Financiallaccounting

Answer:l AlDiffic
ulty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:lManagementlorganizationlandlroleslBloom
's: Remember
AACSB:
ReflectivelThinkinglAcces
sibility:lKeyboardlNavigation

7) Alfirm'slcapitallstructurelrefersltolthelfirm's:
A) mixtureloflvariousltypesloflproductionlequipment.
B) investmentlselectionslforlitslexcesslcashlreserves.
C) combinationloflcashlandlcashlequivalents.
D) combinationloflaccountslappearinglonlthelleftlsideloflitslbalancelsheet.
E) proportionsloflfinancinglfromlcurrentlandllong-termldebtlandlequity.

Answer:l ElDifficu
lty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:l Capitallstructure
Bloom's:
RememberlAACSB
: ReflectivelThinking
Accessibility:lll KeyboardlNavigation

8) Short-termlfinanceldealslwith:
A) theltimingloflcashlflows.
B) acquiringlandlsellinglfixedlassets.
C) financingllong-termlprojects.
D) capitallbudgeting.
E) issuingladditionallsharesloflcommonlstock.

Answer:l AlDiffic
ulty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lT
opic:l Cashlmanagementl-lgenerallBloom's:
Understand
AACSB:
ReflectivelThinkinglAcces
sibility:lKeyboardlNavigation
3
Copyrightl©l2019lMcGraw-HilllEducation.lAlllrightslreserved.
NolreproductionlorldistributionlwithoutlthelpriorlwrittenlconsentloflMcGraw-HilllEducation.

, 9) Whichlonelofltheselaccountslislincludedlinlnetlworkinglcapital?
A) Copyright
B) Manufacturinglequipment
C) Commonlstock
D) Long-termldebt
E) Inventory

Answer:l ElDifficu
lty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:l Netlworkinglcapital
Bloom's:
UnderstandlAACSB
: ReflectivelThinking
Accessibility:l KeyboardlNavigation

10) Thelprocessloflplanninglandlmanaginglalfirm'sllong-termlassetslislcalled:
A) workinglcapitallmanagement.
B) cashlmanagement.
C) costlaccountinglmanagement.
D) capitallbudgeting.
E) capitallstructurelmanagement.

Answer:l DlDiffic
ulty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:l Capitallbudgeting
Bloom's:
RememberlAACSB
: ReflectivelThinking
Accessibility:l KeyboardlNavigation

11) Anyldebtlthatlmustlbelrepaidlwithinlthelnextlyearlislrecordedlonlthelbalancelsheetlas:
A) alcurrentlliability.
B) long-termldebt.
C) anlintangiblelasset.
D) accountslreceivable.
E) alcurrentlasset.

Answer:l AlDiffic
ulty:l1lEasy
Section:l 1.1lWhatlislCorporatelFinance?lTopi
c:l Balancelsheet
Bloom's:
RememberlAACSB
: ReflectivelThinking
Accessibility:l KeyboardlNavigation
4
Copyrightl©l2019lMcGraw-HilllEducation.lAlllrightslreserved.
NolreproductionlorldistributionlwithoutlthelpriorlwrittenlconsentloflMcGraw-HilllEducation.