TEST BANK
Corporate Finance
BRADFORD D. JORDAN, STEPHEN A. ROSS, RANDOLPH W. WESTERFIELD, JEFFREY JAFFE
13th edition
,Chapter 1 l
Student name:_
l l
MULTIPLElCHOICEl-
l Chooselthelonelalternativelthatlbestlcompleteslthelstatementlorl answerslthelquestion.
1) Generally,lamonglthoselwholreportldirectlyltolthe
areltheltreasurerlandlthel controllerloflalcorporation.
A) boardlofldirectors
B) chairpersonloflthelboard
C) chieflexecutivelofficer
D) president
E) chieflfinanciallofficer
2) Altypicallchainloflcommandlinlalcorporationlisldescribedlbylwhichloneloflthelfollowingl stateme
nts?
A) Thelinformationlsystemslmanagerlreportsltoltheltreasurer.
B) Thelcreditlmanagerlreportsltoltheltreasurer.
C) Thelcontrollerlreportsltolthelchieflexecutivelofficer.
D) Theltaxlmanagerlreportsltoltheltreasurer.
E) Thelcapitallexpenditureslmanagerlreportsltolthelcontroller.
3) Answeringlwhichloneloflthelfollowinglquestionslinvolveslmakinglalcapitallbudgetingl decisio
n?
Version 1 2
, A) Howlmuchldebtlshouldlthelfirmlborrowlfromlalparticularllender?
B) Shouldlthelfirmlbuildlalnewlproductionlfacility?
C) Shouldlthelfirmlissuelnewlequityltolpaylforlitslgrowthlgoals?
D) Howlmuchlinventorylshouldlthelfirmlkeeplonlhand?
E) Howlmuchlcreditlshouldlthelfirmlextendltolalparticularlcustomer?
4) Whichloneloflthelfollowinglstatementslislaccurate?
A) Netlworkinglcapitallequalslcurrentlassetslpluslcurrentlliabilities.
B) Currentlliabilitieslareldebtslthatlmustlbelrepaidlinl18lmonthslorlless.
C) Currentlassetslarelassetslwithlshortllives,lsuchlaslaccountslreceivable.
D) Long-termldebtlisldefinedlaslalresiduallclaimlonlalfirm’slassets.
E) Tangiblelassetslarelfixedlassetslsuchlaslpatents.
5) Amongltheltypicallresponsibilitiesloflthelcorporatelcontrollerlis:
A) capitallexpenditureslmanagement.
B) cashlmanagement.
C) taxlreporting.
D) financiallplanning.
E) creditlmanagement.
6) l isltypicallylthelresponsibilityloflthelcorporateltreasurer.
A) Financiallplanning
B) Costlaccounting
C) Taxlreporting
D) Informationlsystems
E) Financiallaccounting
7) Alfirm’s define(s)litslcapitallstructure.
Version 1 3
, A) mixtureloflvariousltypesloflproductionlequipment
B) investmentl selectionslforlitslexcesslcashlreserves
C) combinationloflcashlandlcashlequivalents
D) combinationloflaccountslappearinglonlthelleftlsideloflitslbalancelsheet
E) proportionsloflfinancinglfromldebtlandlequity
8) Thelfocusloflshort-termlfinancelislon:
A) theltimingloflcashlflows.
B) acquiringlandlsellinglfixedlassets.
C) financingllong-termlprojects.
D) capitallbudgeting.
E) issuingladditionallsharesloflcommonlstock.
9) Netlworkinglcapitallincludes:
A) copyrights.
B) manufacturinglequipment.
C) commonlstock.
D) long-termldebt.
E) inventory.
10) l isldefinedlaslplanninglandlmanaginglalfirm’sllong-termlassets.
A) Workinglcapitallmanagement
B) Cashlmanagement
C) Costlaccountinglmanagement
D) Capitallbudgeting
E) Capitallstructurelmanagement
11) Anlamountlthelfirmslowes,lwhichlitlmustlrepaylwithinltwelvelmonths,l islcalledla(n):
Version 1 4
Corporate Finance
BRADFORD D. JORDAN, STEPHEN A. ROSS, RANDOLPH W. WESTERFIELD, JEFFREY JAFFE
13th edition
,Chapter 1 l
Student name:_
l l
MULTIPLElCHOICEl-
l Chooselthelonelalternativelthatlbestlcompleteslthelstatementlorl answerslthelquestion.
1) Generally,lamonglthoselwholreportldirectlyltolthe
areltheltreasurerlandlthel controllerloflalcorporation.
A) boardlofldirectors
B) chairpersonloflthelboard
C) chieflexecutivelofficer
D) president
E) chieflfinanciallofficer
2) Altypicallchainloflcommandlinlalcorporationlisldescribedlbylwhichloneloflthelfollowingl stateme
nts?
A) Thelinformationlsystemslmanagerlreportsltoltheltreasurer.
B) Thelcreditlmanagerlreportsltoltheltreasurer.
C) Thelcontrollerlreportsltolthelchieflexecutivelofficer.
D) Theltaxlmanagerlreportsltoltheltreasurer.
E) Thelcapitallexpenditureslmanagerlreportsltolthelcontroller.
3) Answeringlwhichloneloflthelfollowinglquestionslinvolveslmakinglalcapitallbudgetingl decisio
n?
Version 1 2
, A) Howlmuchldebtlshouldlthelfirmlborrowlfromlalparticularllender?
B) Shouldlthelfirmlbuildlalnewlproductionlfacility?
C) Shouldlthelfirmlissuelnewlequityltolpaylforlitslgrowthlgoals?
D) Howlmuchlinventorylshouldlthelfirmlkeeplonlhand?
E) Howlmuchlcreditlshouldlthelfirmlextendltolalparticularlcustomer?
4) Whichloneloflthelfollowinglstatementslislaccurate?
A) Netlworkinglcapitallequalslcurrentlassetslpluslcurrentlliabilities.
B) Currentlliabilitieslareldebtslthatlmustlbelrepaidlinl18lmonthslorlless.
C) Currentlassetslarelassetslwithlshortllives,lsuchlaslaccountslreceivable.
D) Long-termldebtlisldefinedlaslalresiduallclaimlonlalfirm’slassets.
E) Tangiblelassetslarelfixedlassetslsuchlaslpatents.
5) Amongltheltypicallresponsibilitiesloflthelcorporatelcontrollerlis:
A) capitallexpenditureslmanagement.
B) cashlmanagement.
C) taxlreporting.
D) financiallplanning.
E) creditlmanagement.
6) l isltypicallylthelresponsibilityloflthelcorporateltreasurer.
A) Financiallplanning
B) Costlaccounting
C) Taxlreporting
D) Informationlsystems
E) Financiallaccounting
7) Alfirm’s define(s)litslcapitallstructure.
Version 1 3
, A) mixtureloflvariousltypesloflproductionlequipment
B) investmentl selectionslforlitslexcesslcashlreserves
C) combinationloflcashlandlcashlequivalents
D) combinationloflaccountslappearinglonlthelleftlsideloflitslbalancelsheet
E) proportionsloflfinancinglfromldebtlandlequity
8) Thelfocusloflshort-termlfinancelislon:
A) theltimingloflcashlflows.
B) acquiringlandlsellinglfixedlassets.
C) financingllong-termlprojects.
D) capitallbudgeting.
E) issuingladditionallsharesloflcommonlstock.
9) Netlworkinglcapitallincludes:
A) copyrights.
B) manufacturinglequipment.
C) commonlstock.
D) long-termldebt.
E) inventory.
10) l isldefinedlaslplanninglandlmanaginglalfirm’sllong-termlassets.
A) Workinglcapitallmanagement
B) Cashlmanagement
C) Costlaccountinglmanagement
D) Capitallbudgeting
E) Capitallstructurelmanagement
11) Anlamountlthelfirmslowes,lwhichlitlmustlrepaylwithinltwelvelmonths,l islcalledla(n):
Version 1 4
