Test Bank For
Corporate Finance,
13th Edition By Stephen Ross, Randolph Westerfield
Version 1 1
,Test Bank For
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Chapter 1
Student Name:_
Multiple Choice - Choose The One Alternative That Best Completes The Statement Or
Answers The Question.
1) Generally, Among Those Who Report Directly To The Are The Treasurer
And The
Controller Of A Corporation.
A) Board Of Directors
B) Chairperson Of The
Board C) Chief Executive
Officer D) President
E) Chief Financial Officer
2) A Typical Chain Of Command In A Corporation Is Described By Which One Of The
Following Statements?
A) The Information Systems Manager Reports To The
Treasurer. B) The Credit Manager Reports To The Treasurer.
C) The Controller Reports To The Chief Executive
Officer. D) The Tax Manager Reports To The
Treasurer.
E) The Capital Expenditures Manager Reports To The Controller.
3) Answering Which One Of The Following Questions Involves Making A Capital
Budgeting Decision?
Version 1 2
, A) How Much Debt Should The Firm Borrow From A Particular
Lender? B) Should The Firm Build A New Production Facility?
C) Should The Firm Issue New Equity To Pay For Its Growth
Goals? D) How Much Inventory Should The Firm Keep On
Hand?
E) How Much Credit Should The Firm Extend To A Particular Customer?
4) Which One Of The Following Statements Is Accurate?
A) Net Working Capital Equals Current Assets Plus Current Liabilities.
B) Current Liabilities Are Debts That Must Be Repaid In 18 Months Or
Less. C) Current Assets Are Assets With Short Lives, Such As Accounts
Receivable. D) Long-Term Debt Is Defined As A Residual Claim On A
Firm’s Assets.
E) Tangible Assets Are Fixed Assets Such As Patents.
5) Among The Typical Responsibilities Of The Corporate
Controller Is: A) Capital Expenditures Management.
B) Cash
Management. C) Tax
Reporting.
D) Financial Planning.
E) Credit
Management.
6) Is Typically The Responsibility Of The Corporate Treasurer.
A) Financial Planning
B) Cost Accounting
C) Tax Reporting
D) Information Systems
E) Financial Accounting
Version 1 3
, 7) A Firm’s Define(S) Its Capital Structure.
A) Mixture Of Various Types Of Production
Equipment B) Investment Selections For Its Excess
Cash Reserves C) Combination Of Cash And Cash
Equivalents
D) Combination Of Accounts Appearing On The Left Side Of Its Balance Sheet
E) Proportions Of Financing From Debt And Equity
8) The Focus Of Short-Term Finance Is
On: A) The Timing Of Cash Flows.
B) Acquiring And Selling Fixed
Assets. C) Financing Long-Term
Projects.
D) Capital Budgeting.
E) Issuing Additional Shares Of Common Stock.
9) Net Working Capital
Includes: A) Copyrights.
B) Manufacturing
Equipment. C) Common
Stock.
D) Long-Term
Debt. E)
Inventory.
10) Is Defined As Planning And Managing A Firm’s Long-Term Assets.
A) Working Capital Management
B) Cash Management
C) Cost Accounting Management
D) Capital Budgeting
E) Capital Structure Management
Version 1 4
Corporate Finance,
13th Edition By Stephen Ross, Randolph Westerfield
Version 1 1
,Test Bank For
Corporate Finance 13th Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Chapter 1
Student Name:_
Multiple Choice - Choose The One Alternative That Best Completes The Statement Or
Answers The Question.
1) Generally, Among Those Who Report Directly To The Are The Treasurer
And The
Controller Of A Corporation.
A) Board Of Directors
B) Chairperson Of The
Board C) Chief Executive
Officer D) President
E) Chief Financial Officer
2) A Typical Chain Of Command In A Corporation Is Described By Which One Of The
Following Statements?
A) The Information Systems Manager Reports To The
Treasurer. B) The Credit Manager Reports To The Treasurer.
C) The Controller Reports To The Chief Executive
Officer. D) The Tax Manager Reports To The
Treasurer.
E) The Capital Expenditures Manager Reports To The Controller.
3) Answering Which One Of The Following Questions Involves Making A Capital
Budgeting Decision?
Version 1 2
, A) How Much Debt Should The Firm Borrow From A Particular
Lender? B) Should The Firm Build A New Production Facility?
C) Should The Firm Issue New Equity To Pay For Its Growth
Goals? D) How Much Inventory Should The Firm Keep On
Hand?
E) How Much Credit Should The Firm Extend To A Particular Customer?
4) Which One Of The Following Statements Is Accurate?
A) Net Working Capital Equals Current Assets Plus Current Liabilities.
B) Current Liabilities Are Debts That Must Be Repaid In 18 Months Or
Less. C) Current Assets Are Assets With Short Lives, Such As Accounts
Receivable. D) Long-Term Debt Is Defined As A Residual Claim On A
Firm’s Assets.
E) Tangible Assets Are Fixed Assets Such As Patents.
5) Among The Typical Responsibilities Of The Corporate
Controller Is: A) Capital Expenditures Management.
B) Cash
Management. C) Tax
Reporting.
D) Financial Planning.
E) Credit
Management.
6) Is Typically The Responsibility Of The Corporate Treasurer.
A) Financial Planning
B) Cost Accounting
C) Tax Reporting
D) Information Systems
E) Financial Accounting
Version 1 3
, 7) A Firm’s Define(S) Its Capital Structure.
A) Mixture Of Various Types Of Production
Equipment B) Investment Selections For Its Excess
Cash Reserves C) Combination Of Cash And Cash
Equivalents
D) Combination Of Accounts Appearing On The Left Side Of Its Balance Sheet
E) Proportions Of Financing From Debt And Equity
8) The Focus Of Short-Term Finance Is
On: A) The Timing Of Cash Flows.
B) Acquiring And Selling Fixed
Assets. C) Financing Long-Term
Projects.
D) Capital Budgeting.
E) Issuing Additional Shares Of Common Stock.
9) Net Working Capital
Includes: A) Copyrights.
B) Manufacturing
Equipment. C) Common
Stock.
D) Long-Term
Debt. E)
Inventory.
10) Is Defined As Planning And Managing A Firm’s Long-Term Assets.
A) Working Capital Management
B) Cash Management
C) Cost Accounting Management
D) Capital Budgeting
E) Capital Structure Management
Version 1 4
