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

TEST BANK Xt




Corporate Finance 13th Edition
Xt Xt Xt




By Stephen Ross, Randolph Westerfield,
Xt Xt Xt Xt




Chapters 1 - 21, Complete
tX Xt Xt Xt Xt




Version 1
Xt 1

,Chapter 1 Xt




Student name:_
Xt Xt




MULTIPLE CHOICE - Xt Xt



Choose the one alternative that best completes thefstatement orfanswers the question.
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt


1) Generally, among those who report directlyto the
Xt Xt Xt Xt Xt Xt



are the treasurer and thecontroller of a corporation.
Xt Xt Xt Xt Xt Xt Xt




A) board of directors Xt Xt



B) chairperson of the board Xt Xt Xt



C) chief executive officer
Xt Xt


D) president
E) chief financial officer
Xt Xt




2) A typical chainfof command in a corporation is described by which one of the followingfsta
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt



tements?
Xt




A) Thefinformation systems manager reports to the treasurer. Xt Xt Xt Xt Xt Xt


B) The credit managerfreportsto the treasurer.
Xt Xt Xt Xt



C) The controllerfreports to the chief executive officer.
Xt Xt Xt Xt Xt Xt



D) Theftax managerfreports to the treasurer.
Xt Xt Xt Xt



E) The capital expenditures manager reportsto the controller.
Xt Xt Xt Xt Xt Xt




3) Answering which one of the following questions involves making a capital budgetingfde
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt



cision?
Xt




Version 1
Xt 2

, A) How much debt should the firm borrow from a particular lender?
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt



B) Should the firm build a new production facility?
Xt Xt Xt Xt Xt Xt Xt



C) Should the firm issue new equityto payfor its growth goals?
Xt Xt Xt Xt Xt Xt Xt Xt Xt


D) How much inventoryshould the firm keep on hand?
Xt Xt Xt Xt Xt Xt Xt



E) How much credit shouldfthe firmextend to afparticular customer?
Xt Xt Xt Xt Xt Xt Xt




4) Which one of the following statements is accurate?
Xt Xt Xt Xt Xt Xt Xt




A) Net working capitalequals current assets plus current liabilities.
Xt Xt Xt Xt Xt Xt Xt



B) Current liabilities are debts that must befrepaid in 18 months orfless.
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt



C) Current assets are assets with short lives, such as accounts receivable.
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt



D) Long-term debt is defined as a residual claim on a firm’s assets.
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt


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




5) Among theftypical responsibilitiesfof the corporatefcontroller is:
Xt Xt Xt Xt Xt




A) capital expenditures management.
Xt Xt



B) cash management.
Xt


C) tax reporting.
Xt



D) financial planning. Xt


E) credit management. Xt




6) is typically the responsibilityof the corporate treasurer.
Xt Xt Xt Xt Xt Xt




A) Financial planning Xt


B) Cost accounting Xt



C) Tax reporting
Xt


D) Informationsystems
E) Financialaccounting



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




Version 1
Xt 3

, A) mixture of various types of production equipment
Xt Xt Xt Xt Xt Xt



B) investment selections for its excess cash reserves
Xt Xt Xt Xt Xt Xt



C) combination of cash and cash equivalents Xt Xt Xt Xt Xt


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



E) proportions of financing fromdebt and equity
Xt Xt Xt Xt Xt




8) The focus of short-term finance is on:
Xt Xt Xt Xt Xt Xt




A) the timingfof cash flows.
Xt Xt Xt



B) acquiringfand sellingffixed assets. Xt Xt



C) financingflong-termprojects.
D) capital budgeting. Xt



E) issuing additional shares of common stock.
Xt Xt Xt Xt Xt




9) Net working capital includes:
Xt Xt Xt




A) copyrights.
B) manufacturing equipment. Xt


C) common stock. Xt



D) long-term debt. Xt



E) inventory.



10) is defined as planning and managing a firm’s long-termassets.
Xt Xt Xt Xt Xt Xt Xt Xt




A) Workingfcapital management Xt



B) Cash management
Xt



C) Cost accounting management
Xt Xt


D) Capitalbudgeting
E) Capitalstructure management Xt




11) An amount the firms owes, which it must repaywithin twelvefmonths, is called a(n):
Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt Xt




Version 1
Xt 4