Test Bank for Corporate Finance
b b b b b
13th Edition By Stephen Ross, Randolph Westerfield,
b b b b b b
b Chapters 1 - 21, Complete
b b b b
Version 1
b 1
,Chapter 1 b
Student name:_
b b
MULTIPLE CHOICE - Choose the one alternative that best completes the statement oranswers
b b b b b b b b b b b b b
the question.
b b
1) Generally, among those who report directly to the
b are the treasurer and the b b b b b b b b b b
controller of a corporation.
b b b b
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 following
b b b b b b b b b b b b b b b
statements?
b
A) The information systems manager reports to the treasurer.
b b b b b b b
B) The credit manager reports to the treasurer.
b b b b b b
C) The controller reports to the chief executive officer.
b b b b b b b
D) The tax manager reports to the treasurer.
b b b b b b
E) The capital expenditures manager reports to the controller.
b b b b b b b
3) Answering which one of the following questions involves making a capital budgeting
b b b b b b b b b b b
decision?
b
Version 1
b 2
, A) How much debt should the firm borrow from a particular lender?
b b b b b b b b b b
B) Should the firm build a new production facility?
b b b b b b b
C) Should the firm issue new equity to pay for its growth goals?
b b b b b b b b b b b
D) How much inventory should the firm keep on hand?
b b b b b b b b
E) How much credit should the firm extend to a particular customer?
b b b b b b b b b b
4) Which one of the following statements is accurate?
b b b b b b b
A) Net working capital equals current assets plus current liabilities.
b b b b b b b b
B) Current liabilities are debts that must be repaid in 18 months or less.
b b b b b b b b b b b b
C) Current assets are assets with short lives, such as accounts receivable.
b b b b b b b b b b
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:
b b b b b b b b
A) capital expenditures management. b b
B) cash management.
b
C) tax reporting.
b
D) financial planning. b
E) credit management. b
6) b is typically the responsibility of the corporate treasurer.
b b b b b b b
A) Financial planning b
B) Cost accounting
b
C) Tax reporting
b
D) Information systems b
E) Financial accounting b
7) A firm’s
b define(s) its capital structure. b b b
Version 1
b 3
, A) mixture of various types of production equipment
b b b b b b
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:
b b b b b b
A) the timing of cash flows.
b b b b
B) acquiring and selling fixed assets. b b b b
C) financing long-term projects. b b
D) capital budgeting. b
E) issuing additional shares of common stock.
b b b b b
9) Net working capital includes:
b b b
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.
b b b b b b b b b
A) Working capital management b b
B) Cash management
b
C) Cost accounting management
b b
D) Capital budgeting b
E) Capital structure management
b b
11) An amount the firms owes, which it must repay within twelve months, is called a(n):
b b b b b b b b b b b b b b
Version 1
b 4
b b b b b
13th Edition By Stephen Ross, Randolph Westerfield,
b b b b b b
b Chapters 1 - 21, Complete
b b b b
Version 1
b 1
,Chapter 1 b
Student name:_
b b
MULTIPLE CHOICE - Choose the one alternative that best completes the statement oranswers
b b b b b b b b b b b b b
the question.
b b
1) Generally, among those who report directly to the
b are the treasurer and the b b b b b b b b b b
controller of a corporation.
b b b b
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 following
b b b b b b b b b b b b b b b
statements?
b
A) The information systems manager reports to the treasurer.
b b b b b b b
B) The credit manager reports to the treasurer.
b b b b b b
C) The controller reports to the chief executive officer.
b b b b b b b
D) The tax manager reports to the treasurer.
b b b b b b
E) The capital expenditures manager reports to the controller.
b b b b b b b
3) Answering which one of the following questions involves making a capital budgeting
b b b b b b b b b b b
decision?
b
Version 1
b 2
, A) How much debt should the firm borrow from a particular lender?
b b b b b b b b b b
B) Should the firm build a new production facility?
b b b b b b b
C) Should the firm issue new equity to pay for its growth goals?
b b b b b b b b b b b
D) How much inventory should the firm keep on hand?
b b b b b b b b
E) How much credit should the firm extend to a particular customer?
b b b b b b b b b b
4) Which one of the following statements is accurate?
b b b b b b b
A) Net working capital equals current assets plus current liabilities.
b b b b b b b b
B) Current liabilities are debts that must be repaid in 18 months or less.
b b b b b b b b b b b b
C) Current assets are assets with short lives, such as accounts receivable.
b b b b b b b b b b
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:
b b b b b b b b
A) capital expenditures management. b b
B) cash management.
b
C) tax reporting.
b
D) financial planning. b
E) credit management. b
6) b is typically the responsibility of the corporate treasurer.
b b b b b b b
A) Financial planning b
B) Cost accounting
b
C) Tax reporting
b
D) Information systems b
E) Financial accounting b
7) A firm’s
b define(s) its capital structure. b b b
Version 1
b 3
, A) mixture of various types of production equipment
b b b b b b
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:
b b b b b b
A) the timing of cash flows.
b b b b
B) acquiring and selling fixed assets. b b b b
C) financing long-term projects. b b
D) capital budgeting. b
E) issuing additional shares of common stock.
b b b b b
9) Net working capital includes:
b b b
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.
b b b b b b b b b
A) Working capital management b b
B) Cash management
b
C) Cost accounting management
b b
D) Capital budgeting b
E) Capital structure management
b b
11) An amount the firms owes, which it must repay within twelve months, is called a(n):
b b b b b b b b b b b b b b
Version 1
b 4
