TEST BANK
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1 1
,Chapter 1 d
Student name:_
d d
MULTIPLE dCHOICE d- dChoose dthe done dalternative dthat dbest dcompletes dthe dstatement dor
answers dthe dquestion.
d
1) Generally, damong dthose dwho dreport ddirectly dto dthe are dthe dtreasurer dand
dthedcontroller dof da dcorporation.
A) board dof ddirectors
B) chairperson dof dthe dboard
C) chief dexecutive dofficer
D) president
E) chief dfinancial dofficer
2) A dtypical dchain dof dcommand din da dcorporation dis ddescribed dby dwhich done dof dthe
d followingdstatements?
A) The dinformation dsystems dmanager dreports dto dthe dtreasurer.
B) The dcredit dmanager dreports dto dthe dtreasurer.
C) The dcontroller dreports dto dthe dchief dexecutive dofficer.
D) The dtax dmanager dreports dto dthe dtreasurer.
E) The dcapital dexpenditures dmanager dreports dto dthe dcontroller.
3) Answering dwhich done dof dthe dfollowing dquestions dinvolves dmaking da dcapital
dbudgetingddecision?
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, A) How dmuch ddebt dshould dthe dfirm dborrow dfrom da dparticular dlender?
B) Should dthe dfirm dbuild da dnew dproduction dfacility?
C) Should dthe dfirm dissue dnew dequity dto dpay dfor dits dgrowth dgoals?
D) How dmuch dinventory dshould dthe dfirm dkeep don dhand?
E) How dmuch dcredit dshould dthe dfirm dextend dto da dparticular dcustomer?
4) Which done dof dthe dfollowing dstatements dis daccurate?
A) Net dworking dcapital dequals dcurrent dassets dplus dcurrent dliabilities.
B) Current dliabilities dare ddebts dthat dmust dbe drepaid din d18 dmonths dor dless.
C) Current dassets dare dassets dwith dshort dlives, dsuch das daccounts dreceivable.
D) Long-term ddebt dis ddefined das da dresidual dclaim don da dfirm’s dassets.
E) Tangible dassets dare dfixed dassets dsuch das dpatents.
5) Among dthe dtypical dresponsibilities dof dthe dcorporate dcontroller dis:
A) capital dexpenditures dmanagement.
B) cash dmanagement.
C) tax dreporting.
D) financial dplanning.
E) credit dmanagement.
6) d is dtypically dthe dresponsibility dof dthe dcorporate dtreasurer.
A) Financial dplanning
B) Cost daccounting
C) Tax dreporting
D) Information dsystems
E) Financial daccounting
7) A dfirm’s define(s) dits dcapital dstructure.
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, A) mixture dof dvarious dtypes dof dproduction dequipment
B) investment dselections dfor dits dexcess dcash dreserves
C) combination dof dcash dand dcash dequivalents
D) combination dof daccounts dappearing don dthe dleft dside dof dits dbalance dsheet
E) proportions dof dfinancing dfrom ddebt dand dequity
8) The dfocus dof dshort-term dfinance dis don:
A) the dtiming dof dcash dflows.
B) acquiring dand dselling dfixed dassets.
C) financing dlong-term dprojects.
D) capital dbudgeting.
E) issuing dadditional dshares dof dcommon dstock.
9) Net dworking dcapital dincludes:
A) copyrights.
B) manufacturing dequipment.
C) common dstock.
D) long-term ddebt.
E) inventory.
10) d is ddefined das dplanning dand dmanaging da dfirm’s dlong-term dassets.
A) Working dcapital dmanagement
B) Cash dmanagement
C) Cost daccounting dmanagement
D) Capital dbudgeting
E) Capital dstructure dmanagement
11) An damount dthe dfirms dowes, dwhich dit dmust drepay dwithin dtwelve dmonths, dis dcalled da(n):
Version 1 4
Corporate Finance 13th Edition
By Stephen Ross, Randolph Westerfield,
Chapters 1 - 21, Complete
Version 1 1
,Chapter 1 d
Student name:_
d d
MULTIPLE dCHOICE d- dChoose dthe done dalternative dthat dbest dcompletes dthe dstatement dor
answers dthe dquestion.
d
1) Generally, damong dthose dwho dreport ddirectly dto dthe are dthe dtreasurer dand
dthedcontroller dof da dcorporation.
A) board dof ddirectors
B) chairperson dof dthe dboard
C) chief dexecutive dofficer
D) president
E) chief dfinancial dofficer
2) A dtypical dchain dof dcommand din da dcorporation dis ddescribed dby dwhich done dof dthe
d followingdstatements?
A) The dinformation dsystems dmanager dreports dto dthe dtreasurer.
B) The dcredit dmanager dreports dto dthe dtreasurer.
C) The dcontroller dreports dto dthe dchief dexecutive dofficer.
D) The dtax dmanager dreports dto dthe dtreasurer.
E) The dcapital dexpenditures dmanager dreports dto dthe dcontroller.
3) Answering dwhich done dof dthe dfollowing dquestions dinvolves dmaking da dcapital
dbudgetingddecision?
Version 1 2
, A) How dmuch ddebt dshould dthe dfirm dborrow dfrom da dparticular dlender?
B) Should dthe dfirm dbuild da dnew dproduction dfacility?
C) Should dthe dfirm dissue dnew dequity dto dpay dfor dits dgrowth dgoals?
D) How dmuch dinventory dshould dthe dfirm dkeep don dhand?
E) How dmuch dcredit dshould dthe dfirm dextend dto da dparticular dcustomer?
4) Which done dof dthe dfollowing dstatements dis daccurate?
A) Net dworking dcapital dequals dcurrent dassets dplus dcurrent dliabilities.
B) Current dliabilities dare ddebts dthat dmust dbe drepaid din d18 dmonths dor dless.
C) Current dassets dare dassets dwith dshort dlives, dsuch das daccounts dreceivable.
D) Long-term ddebt dis ddefined das da dresidual dclaim don da dfirm’s dassets.
E) Tangible dassets dare dfixed dassets dsuch das dpatents.
5) Among dthe dtypical dresponsibilities dof dthe dcorporate dcontroller dis:
A) capital dexpenditures dmanagement.
B) cash dmanagement.
C) tax dreporting.
D) financial dplanning.
E) credit dmanagement.
6) d is dtypically dthe dresponsibility dof dthe dcorporate dtreasurer.
A) Financial dplanning
B) Cost daccounting
C) Tax dreporting
D) Information dsystems
E) Financial daccounting
7) A dfirm’s define(s) dits dcapital dstructure.
Version 1 3
, A) mixture dof dvarious dtypes dof dproduction dequipment
B) investment dselections dfor dits dexcess dcash dreserves
C) combination dof dcash dand dcash dequivalents
D) combination dof daccounts dappearing don dthe dleft dside dof dits dbalance dsheet
E) proportions dof dfinancing dfrom ddebt dand dequity
8) The dfocus dof dshort-term dfinance dis don:
A) the dtiming dof dcash dflows.
B) acquiring dand dselling dfixed dassets.
C) financing dlong-term dprojects.
D) capital dbudgeting.
E) issuing dadditional dshares dof dcommon dstock.
9) Net dworking dcapital dincludes:
A) copyrights.
B) manufacturing dequipment.
C) common dstock.
D) long-term ddebt.
E) inventory.
10) d is ddefined das dplanning dand dmanaging da dfirm’s dlong-term dassets.
A) Working dcapital dmanagement
B) Cash dmanagement
C) Cost daccounting dmanagement
D) Capital dbudgeting
E) Capital dstructure dmanagement
11) An damount dthe dfirms dowes, dwhich dit dmust drepay dwithin dtwelve dmonths, dis dcalled da(n):
Version 1 4
