Corporate Finance, 13th Edition (Stephen Ross & Randolph Westerfield) – Complete Test Bank (Chapters 1–21)

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




Version 1
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,Chapter 1 gp




Student name:_ gp gp




MULTIPLE CHOICE - gp gp




Choose the onealternative that best completes the statement oranswers the question.
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1) Generally, among those who report directlyto the gp gp gp gp gp p
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are the treasurer and thecontroller ofa corporation.
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A) board of directors gp gp




B) chairperson ofthe board gp gp gp




C) chiefexecutive officer gp gp




D) president
E) chief financialofficer gp gp




2) Atypicalchain ofcommand in a corporation is described by which one ofthe followingstatem
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ents?

A) The information systems manager reportsto the treasurer.
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B) The credit manager reportsto the treasurer.
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C) The controller reportsto the chiefexecutive officer.
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D) Thetax manager reports to the treasurer.
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E) The capitalexpenditures manager reportsto the controller.
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3) Answering which one ofthe following questions involves making a capital budgetingdecis
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ion?




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, A) How much debt should the firmborrow from a particular lender?
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B) Should the firm build a new production facility? gp gp gp gp gp gp gp




C) Should the firm issue new equityto pay for its growth goals?
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D) How much inventoryshould the firm keep on hand?
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E) Howmuchcredit should the firmextend to a particular customer?
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4) Whichone ofthe following statements is accurate?
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A) Net working capitalequals current assets plus current liabilities.
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B) Current liabilities are debts that must be repaid in18 months or less.
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C) Current assets areassets withshort lives, such as accounts receivable.
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D) Long-termdebt is defined as a residualclaim on a firm’s assets. gp gp gp gp gp gp gp gp gp gp gp




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




5) Among the typical responsibilities ofthe corporate controller is:
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A) capitalexpenditures management. gp gp




B) cash management. gp




C) taxreporting.
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D) financialplanning. gp




E) credit management. gp




6) gp is typically the responsibilityofthe corporatetreasurer.
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A) Financialplanning gp




B) Cost accounting gp




C) Taxreporting gp




D) Informationsystems gp




E) Financialaccounting gp




7) A firm’s gp define(s) its capitalstructure. gp gp p
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, A) mixture ofvarious types ofproduction equipment gp gp gp gp gp gp




B) investment selections for itsexcess cashreserves gp gp gp gp gp gp




C) combination of cash and cash equivalents gp gp gp gp gp




D) combinationofaccounts appearing on the left side of its balance sheet gp gp gp gp gp gp gp gp gp gp gp




E) proportions of financing fromdebt and equity gp gp gp p
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8) The focus ofshort-term finance is on:
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A) the timing ofcash flows.
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B) acquiring and selling fixed assets. gp gp gp gp




C) financing long-termprojects. gp gp




D) capitalbudgeting. gp




E) issuing additionalshares ofcommon stock.
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9) Net working capital includes:
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A) copyrights.
B) manufacturing equipment. gp




C) common stock. gp




D) long-termdebt. gp




E) inventory.



10) gp is defined as planning and managing a firm’s long-termassets.
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A) Working capitalmanagement gp gp




B) Cashmanagement
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C) Cost accounting management
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D) Capitalbudgeting gp




E) Capitalstructure management gp gp




11) Anamount the firms owes, which it must repaywithin twelve months, is called a(n):
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