Corporate Finance (13th Edition) – Test Bank | Ross, Westerfield & Jordan | Full Chapter Exam Preparation Resource

,Corporate Finance 13th Edition by Ross CH01
ANSWERS ARE LOCATED IN THE SECOND PART OF THIS DOCUMENT
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.
1)


A) board of directors
B) chairperson of the board
C) chief executive officer
D) president
E) chief financial officer



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Basic
Section : 1.1 What is Corporate Finance?
Topic : Management organization and roles
Accessibility : Screen Reader Compatible



2) A typical chain of command in a corporation is described by which one of the following
statements?
2)


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.




Version 1 1

,Corporate Finance 13th Edition by Ross CH01

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Basic
Section : 1.1 What is Corporate Finance?
Topic : Management organization and roles
Accessibility : Screen Reader Compatible



3) Answering which one of the following questions involves making a capital budgeting
decision?
3)


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?



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Difficulty : Basic
Section : 1.1 What is Corporate Finance?
Bloom's : Understand
Topic : Capital budgeting
Accessibility : Screen Reader Compatible



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


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.

Corporate Finance 13th Edition by Ross CH01

Question Details
Version 1 2

, AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Basic
Section : 1.1 What is Corporate Finance?
Topic : Introduction to corporate finance
Accessibility : Screen Reader Compatible



5) Among the typical responsibilities of the corporate controller is:

5)


A) capital expenditures management.
B) cash management.
C) tax reporting.
D) financial planning.
E) credit management.



Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Basic
Section : 1.1 What is Corporate Finance?
Topic : Management organization and roles
Accessibility : Screen Reader Compatible



6) is typically the responsibility of the corporate treasurer.
6)


A) Financial planning
B) Cost accounting
C) Tax reporting
D) Information systems
E) Financial accounting

Corporate Finance 13th Edition by Ross CH01

Question Details
AACSB : Reflective Thinking
Accessibility : Keyboard Navigation
Bloom's : Remember
Difficulty : Basic
Section : 1.1 What is Corporate Finance?
Topic : Management organization and roles
Version 1 3