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

TEST BANK x




Corporate Finance 13th Edition
x x x




By Stephen Ross, Randolph Westerfield,
x x x x




Chapters 1 - 21, Complete
x x x x x




Version 1
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,Chapter 1 x




Studentname:_ x x




MULTIPLE CHOICE - x x



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


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



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




A) board of directors x x



B) chairperson of the board x x x



C) chief executive officer
x x


D) president
E) chief financial officer
x x




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



ments?

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


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



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



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



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




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



sion?




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



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



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


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



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




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




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



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



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



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


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




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




A) capital expenditures management.
x x



B) cash management.
x


C) tax reporting.
x



D) financial planning. x


E) credit management. x




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




A) Financial planning x


B) Cost accounting
x



C) Tax reporting
x


D) Informationsystems
E) Financialaccounting



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




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



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



C) combination of cash and cash equivalents x x x x x


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



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




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




A) the timingfof cash flows.
x x x



B) acquiringfand sellingffixed assets. x x



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



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




9) Net working capital includes:
x x x




A) copyrights.
B) manufacturing equipment. x


C) common stock. x



D) long-term debt. x



E) inventory.



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




A) Workingfcapital management x



B) Cash management
x



C) Cost accounting management
x x


D) Capitalbudgeting
E) Capitalstructure management x




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




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