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

Test Bank for Corporate Finance
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13th Edition By Stephen Ross, Randolph Westerfield,
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Chapters 1 - 21, Complete
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Version 1
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,Chapter 1 b




Student name:_ b b




MULTIPLE CHOICE - Choose the one alternative that best completes the statement oranswers
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the question.
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1) Generally, among those who report directlyto the are the treasurer and
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thecontroller of a corporation.
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A) board of directors b b




B) chairperson of the board b b b




C) chief executive officer b b




D) president
E) chief financial officer b b




2) A typical chain of command in a corporation is described by which one of the
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followingstatements?
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A) The information systems manager reports to the treasurer.
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B) The credit manager reports to the treasurer.
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C) The controller reports to the chief executive officer.
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D) The tax manager reports to the treasurer.
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E) The capital expenditures manager reports to the controller.
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3) Answering which one of the following questions involves making a capital
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budgetingdecision?
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, A) How much debt should the firm borrow from a particular lender?
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B) Should the firm build a new production facility?
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C) Should the firm issue new equityto pay for its growth goals?
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D) How much inventory should the firm keep on hand?
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E) How much credit should the firm extend to a particular customer?
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4) Which one of the following statements is accurate?
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A) Net working capital equals current assets plus current liabilities.
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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.
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D) Long-term debt is defined as a residual claim on a firm’s assets. b b b b b b b b b b b




E) Tangible assets are fixed assets such as patents. b b b b b b b




5) Among the typical responsibilities of the corporate controller is:
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A) capital expenditures management. b b




B) cash management.
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C) tax reporting.
b




D) financial planning. b




E) credit management. b




6) b is typically the responsibility of the corporate treasurer.
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A) Financial planning b




B) Cost accounting
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C) Tax reporting
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D) Information systems b




E) Financial accounting b




7) A firm’s
b define(s) its capital structure. b b b




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, A) mixture of various types of production equipment
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B) investment selections for its excess cash reserves b b b b b b




C) combination of cash and cash equivalents b b b b b




D) combination of accounts appearing on the left side of its balance sheet b b b b b b b b b b b




E) proportions of financing from debt and equity b b b b b b




8) The focus of short-term finance is on:
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A) the timing of cash flows.
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B) acquiring and selling fixed assets. b b b b




C) financing long-termprojects. b b




D) capital budgeting. b




E) issuing additional shares of common stock.
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9) Net working capital includes:
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A) copyrights.
B) manufacturing equipment. b




C) common stock. b




D) long-term debt. b




E) inventory.



10) b is defined as planning and managing a firm’s long-term assets.
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A) Working capital management b b




B) Cash management
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C) Cost accounting management
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D) Capital budgeting b




E) Capital structure management
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11) An amount the firms owes, which it must repaywithin twelve months, is called a(n):
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