TEST BANK For Corporate Finance, 13th Edition By Stephen Ross, Randolph Westerfield, Verified Chapters 1 - 31, Complete Newest Version

TestBank forCorporateFinance
e e e e e




13thEdition ByStephenRoss,Randolph Westerfield,
e e e e e e




e Chapters 1-21, Complete
e e e e




Version 1 1

,Chapter1 e




Student name:_
e e




MULTIPLECHOICE - Choose the onealternative that bestcompletes the statement oranswers the
e e e e e e e e e e e e e e




question.
e




1) Generally, among those who report directlyto the are the treasurer and the
e e e e e e e e e e e




controller ofa corporation.
e e e e




A) board ofdirectors e e




B) chairpersonofthe board e e e




C) chiefexecutiveofficer e e




D) president
E) chieffinancialofficer e e




2) Atypicalchain ofcommand ina corporation is described bywhichone ofthe following
e e e e e e e e e e e e e e e




statements?
e




A) The informationsystems manager reportstothe treasurer.
e e e e e e e




B) The credit manager reportstothe treasurer.
e e e e e e




C) The controller reportstothe chiefexecutive officer.
e e e e e e e




D) Thetax manager reportstothe treasurer.
e e e e e e




E) The capitalexpenditures manager reportsto the controller.
e e e e e e e




3) Answering whichone ofthe following questions involves making a capitalbudgeting
e e e e e e e e e e e




decision?
e




Version 1 2

, A) Howmuchdebt should the firmborrow froma particular lender?
e e e e e e e e e e




B) Shouldthe firmbuild anewproductionfacility? e e e e e e e




C) Should the firm issue new equityto payfor its growthgoals?
e e e e e e e e e e e




D) How much inventoryshould the firmkeep onhand?
e e e e e e e e




E) Howmuchcredit should the firmextend to a particular customer?
e e e e e e e e e e




4) Whichone ofthe following statements is accurate?
e e e e e e e




A) Net working capitalequalscurrent assetspluscurrent liabilities.
e e e e e e e e




B) Current liabilitiesaredebtsthat must berepaid in18 monthsorless.
e e e e e e e e e e e e




C) Current assets areassetswithshort lives, such asaccounts receivable.
e e e e e e e e e e




D) Long-termdebt is defined as a residualclaimon a firm’s assets. e e e e e e e e e e e




E) Tangible assets are fixed assets suchas patents. e e e e e e e




5) Among the typicalresponsibilitiesofthe corporatecontroller is:
e e e e e e e e




A) capitalexpenditures management. e e




B) cashmanagement. e




C) taxreporting.
e




D) financialplanning. e




E) creditmanagement. e




6) e is typically the responsibilityofthe corporatetreasurer.
e e e e e e e




A) Financialplanning e




B) Cost accounting e




C) Taxreporting e




D) Informationsystems e




E) Financialaccounting e




7) A firm’s
e define(s) its capitalstructure. e e e




Version 1 3

, A) mixture ofvarious types ofproductionequipment e e e e e e




B) investment selections for itsexcesscashreserves e e e e e e




C) combinationofcashand cashequivalents e e e e e




D) combinationofaccounts appearing onthe left side of its balance sheet e e e e e e e e e e e




E) proportionsoffinancing fromdebt and equity e e e e e e




8) The focus ofshort-termfinance is on:
e e e e e e




A) the timing ofcash flows.
e e e e




B) acquiring andselling fixed assets. e e e e




C) financing long-termprojects. e e




D) capitalbudgeting. e




E) issuing additionalshares ofcommonstock.
e e e e e




9) Net workingcapitalincludes:
e e e




A) copyrights.
B) manufacturing equipment. e




C) commonstock. e




D) long-termdebt. e




E) inventory.



10) e isdefined as planning and managing a firm’s long-termassets.
e e e e e e e e e




A) Workingcapitalmanagement e e




B) Cashmanagement
e




C) Cost accountingmanagement
e e




D) Capitalbudgeting e




E) Capitalstructuremanagement e e




11) Anamount the firmsowes, which it must repaywithintwelve months, iscalled a(n):
e e e e e e e e e e e e e e




Version 1 4