Test Bank for Corporate Finance
u u u u u
13th Edition By Stephen Ross, Randolph Westerfield,
u u u u u u
u Chapters 1 - 21, Complete
u u u u
Version u1 1
,Chapter 1 u
Student name:_
u u
MULTIPLE uCHOICE u- uChoose uthe uone ualternative uthat ubest ucompletes uthe ustatement uor
answers uthe uquestion.
u
1) Generally, uamong uthose uwho ureport udirectly uto uthe are uthe utreasurer uand
utheucontroller uof ua ucorporation.
A) board uof udirectors
B) chairperson uof uthe uboard
C) chief uexecutive uofficer
D) president
E) chief ufinancial uofficer
2) A utypical uchain uof ucommand uin ua ucorporation uis udescribed uby uwhich uone uof uthe
u followingustatements?
A) The uinformation usystems umanager ureports uto uthe utreasurer.
B) The ucredit umanager ureports uto uthe utreasurer.
C) The ucontroller ureports uto uthe uchief uexecutive uofficer.
D) The utax umanager ureports uto uthe utreasurer.
E) The ucapital uexpenditures umanager ureports uto uthe ucontroller.
3) Answering uwhich uone uof uthe ufollowing uquestions uinvolves umaking ua ucapital
ubudgetingudecision?
Version u1 2
, A) How umuch udebt ushould uthe ufirm uborrow ufrom ua uparticular ulender?
B) Should uthe ufirm ubuild ua unew uproduction ufacility?
C) Should uthe ufirm uissue unew uequity uto upay ufor uits ugrowth ugoals?
D) How umuch uinventory ushould uthe ufirm ukeep uon uhand?
E) How umuch ucredit ushould uthe ufirm uextend uto ua uparticular ucustomer?
4) Which uone uof uthe ufollowing ustatements uis uaccurate?
A) Net uworking ucapital uequals ucurrent uassets uplus ucurrent uliabilities.
B) Current uliabilities uare udebts uthat umust ube urepaid uin u18 umonths uor uless.
C) Current uassets uare uassets uwith ushort ulives, usuch uas uaccounts ureceivable.
D) Long-term udebt uis udefined uas ua uresidual uclaim uon ua ufirm’s uassets.
E) Tangible uassets uare ufixed uassets usuch uas upatents.
5) Among uthe utypical uresponsibilities uof uthe ucorporate ucontroller uis:
A) capital uexpenditures umanagement.
B) cash umanagement.
C) tax ureporting.
D) financial uplanning.
E) credit umanagement.
6) u is utypically uthe uresponsibility uof uthe ucorporate utreasurer.
A) Financial uplanning
B) Cost uaccounting
C) Tax ureporting
D) Information usystems
E) Financial uaccounting
7) A ufirm’s define(s) uits ucapital ustructure.
Version u1 3
, A) mixture uof uvarious utypes uof uproduction uequipment
B) investment uselections ufor uits uexcess ucash ureserves
C) combination uof ucash uand ucash uequivalents
D) combination uof uaccounts uappearing uon uthe uleft uside uof uits ubalance usheet
E) proportions uof ufinancing ufrom udebt uand uequity
8) The ufocus uof ushort-term ufinance uis uon:
A) the utiming uof ucash uflows.
B) acquiring uand uselling ufixed uassets.
C) financing ulong-term uprojects.
D) capital ubudgeting.
E) issuing uadditional ushares uof ucommon ustock.
9) Net uworking ucapital uincludes:
A) copyrights.
B) manufacturing uequipment.
C) common ustock.
D) long-term udebt.
E) inventory.
10) u is udefined uas uplanning uand umanaging ua ufirm’s ulong-term uassets.
A) Working ucapital umanagement
B) Cash umanagement
C) Cost uaccounting umanagement
D) Capital ubudgeting
E) Capital ustructure umanagement
11) An uamount uthe ufirms uowes, uwhich uit umust urepay uwithin utwelve umonths, uis ucalled ua(n):
Version u1 4
u u u u u
13th Edition By Stephen Ross, Randolph Westerfield,
u u u u u u
u Chapters 1 - 21, Complete
u u u u
Version u1 1
,Chapter 1 u
Student name:_
u u
MULTIPLE uCHOICE u- uChoose uthe uone ualternative uthat ubest ucompletes uthe ustatement uor
answers uthe uquestion.
u
1) Generally, uamong uthose uwho ureport udirectly uto uthe are uthe utreasurer uand
utheucontroller uof ua ucorporation.
A) board uof udirectors
B) chairperson uof uthe uboard
C) chief uexecutive uofficer
D) president
E) chief ufinancial uofficer
2) A utypical uchain uof ucommand uin ua ucorporation uis udescribed uby uwhich uone uof uthe
u followingustatements?
A) The uinformation usystems umanager ureports uto uthe utreasurer.
B) The ucredit umanager ureports uto uthe utreasurer.
C) The ucontroller ureports uto uthe uchief uexecutive uofficer.
D) The utax umanager ureports uto uthe utreasurer.
E) The ucapital uexpenditures umanager ureports uto uthe ucontroller.
3) Answering uwhich uone uof uthe ufollowing uquestions uinvolves umaking ua ucapital
ubudgetingudecision?
Version u1 2
, A) How umuch udebt ushould uthe ufirm uborrow ufrom ua uparticular ulender?
B) Should uthe ufirm ubuild ua unew uproduction ufacility?
C) Should uthe ufirm uissue unew uequity uto upay ufor uits ugrowth ugoals?
D) How umuch uinventory ushould uthe ufirm ukeep uon uhand?
E) How umuch ucredit ushould uthe ufirm uextend uto ua uparticular ucustomer?
4) Which uone uof uthe ufollowing ustatements uis uaccurate?
A) Net uworking ucapital uequals ucurrent uassets uplus ucurrent uliabilities.
B) Current uliabilities uare udebts uthat umust ube urepaid uin u18 umonths uor uless.
C) Current uassets uare uassets uwith ushort ulives, usuch uas uaccounts ureceivable.
D) Long-term udebt uis udefined uas ua uresidual uclaim uon ua ufirm’s uassets.
E) Tangible uassets uare ufixed uassets usuch uas upatents.
5) Among uthe utypical uresponsibilities uof uthe ucorporate ucontroller uis:
A) capital uexpenditures umanagement.
B) cash umanagement.
C) tax ureporting.
D) financial uplanning.
E) credit umanagement.
6) u is utypically uthe uresponsibility uof uthe ucorporate utreasurer.
A) Financial uplanning
B) Cost uaccounting
C) Tax ureporting
D) Information usystems
E) Financial uaccounting
7) A ufirm’s define(s) uits ucapital ustructure.
Version u1 3
, A) mixture uof uvarious utypes uof uproduction uequipment
B) investment uselections ufor uits uexcess ucash ureserves
C) combination uof ucash uand ucash uequivalents
D) combination uof uaccounts uappearing uon uthe uleft uside uof uits ubalance usheet
E) proportions uof ufinancing ufrom udebt uand uequity
8) The ufocus uof ushort-term ufinance uis uon:
A) the utiming uof ucash uflows.
B) acquiring uand uselling ufixed uassets.
C) financing ulong-term uprojects.
D) capital ubudgeting.
E) issuing uadditional ushares uof ucommon ustock.
9) Net uworking ucapital uincludes:
A) copyrights.
B) manufacturing uequipment.
C) common ustock.
D) long-term udebt.
E) inventory.
10) u is udefined uas uplanning uand umanaging ua ufirm’s ulong-term uassets.
A) Working ucapital umanagement
B) Cash umanagement
C) Cost uaccounting umanagement
D) Capital ubudgeting
E) Capital ustructure umanagement
11) An uamount uthe ufirms uowes, uwhich uit umust urepay uwithin utwelve umonths, uis ucalled ua(n):
Version u1 4
