Test Bank for Corporate Finance
m m m m m
13th Edition By Stephen Ross, Randolph Westerfield, Ch
m m m m m m m
apters 1 - 21, Complete
m m m m
Version 1 1
,Chapter 1
m
Student name:_
m m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmorm
answersmthemquestion.
1) Generally,mamongmthosemwhomreportmdirectlymtomthe
aremthemtreasurermandmthemcontrollermofmamcorporation.
A) boardmofmdirectors
B) chairpersonmofmthemboard
C) chiefmexecutivemofficer
D) president
E) chiefmfinancialmofficer
2) Amtypicalmchainmofmcommandminmamcorporationmismdescribedmbymwhichmonemofmthemfollowi
ngmstatements?
A) Theminformationmsystemsmmanagermreportsmtomthemtreasurer.
B) Themcreditmmanagermreportsmtomthemtreasurer.
C) Themcontrollermreportsmtomthemchiefmexecutivemofficer.
D) Themtaxmmanagermreportsmtomthemtreasurer.
E) Themcapitalmexpendituresmmanagermreportsmtomthemcontroller.
3) Answeringmwhichmonemofmthemfollowingmquestionsminvolvesmmakingmamcapitalmbudgeti
ngmdecision?
Version 1 2
, A) Howmmuchmdebtmshouldmthemfirmmborrowmfrommamparticularmlender?
B) Shouldmthemfirmmbuildmamnewmproductionmfacility?
C) Shouldmthemfirmmissuemnewmequitymtompaymformitsmgrowthmgoals?
D) Howmmuchminventorymshouldmthemfirmmkeepmonmhand?
E) Howmmuchmcreditmshouldmthemfirmmextendmtomamparticularmcustomer?
4) Whichmonemofmthemfollowingmstatementsmismaccurate?
A) Netmworkingmcapitalmequalsmcurrentmassetsmplusmcurrentmliabilities.
B) Currentmliabilitiesmaremdebtsmthatmmustmbemrepaidminm18mmonthsmormless.
C) Currentmassetsmaremassetsmwithmshortmlives,msuchmasmaccountsmreceivable.
D) Long-termmdebtm ismdefinedmasmamresidualmclaimmonmamfirm’smassets.
E) Tangiblemassetsmaremfixedmassetsmsuchmasmpatents.
5) Amongmthemtypicalmresponsibilitiesmofmthemcorporatemcontrollermis:
A) capitalmexpendituresmmanagement.
B) cashmmanagement.
C) taxmreporting.
D) financialmplanning.
E) creditmmanagement.
6) m ismtypicallymthemresponsibilitymofmthemcorporatemtreasurer.
A) Financialmplanning
B) Costmaccounting
C) Taxmreporting
D) Informationmsystems
E) Financialmaccounting
7) Amfirm’s define(s)mitsmcapitalmstructure.
Version 1 3
, A) mixturemofmvariousmtypesmofmproductionmequipment
B) investmentmselectionsmformitsmexcessmcashmreserves
C) combinationmofmcashmandmcashmequivalents
D) combinationmofmaccountsmappearingmonmthemleftmsidemofmitsmbalancemsheet
E) proportionsmofmfinancingmfrommdebtmandmequity
8) Themfocusmofmshort-termmfinancemismon:
A) themtimingmofmcashmflows.
B) acquiringmandmsellingmfixedmassets.
C) financingmlong-termmprojects.
D) capitalmbudgeting.
E) issuingmadditionalmsharesmofmcommonmstock.
9) Netmworkingmcapitalmincludes:
A) copyrights.
B) manufacturingmequipment.
C) commonmstock.
D) long-termmdebt.
E) inventory.
10) m ismdefinedmasmplanningmandmmanagingmamfirm’smlong-termmassets.
A) Workingmcapitalmmanagement
B) Cashmmanagement
C) Costmaccountingmmanagement
D) Capitalmbudgeting
E) Capitalmstructuremmanagement
11) Anmamountmthemfirmsmowes,mwhichmitmmustmrepaymwithinmtwelvemmonths,mismcalledma(n):
Version 1 4
m m m m m
13th Edition By Stephen Ross, Randolph Westerfield, Ch
m m m m m m m
apters 1 - 21, Complete
m m m m
Version 1 1
,Chapter 1
m
Student name:_
m m
MULTIPLEmCHOICEm-
mChoosemthemonemalternativemthatmbestmcompletesmthemstatementmorm
answersmthemquestion.
1) Generally,mamongmthosemwhomreportmdirectlymtomthe
aremthemtreasurermandmthemcontrollermofmamcorporation.
A) boardmofmdirectors
B) chairpersonmofmthemboard
C) chiefmexecutivemofficer
D) president
E) chiefmfinancialmofficer
2) Amtypicalmchainmofmcommandminmamcorporationmismdescribedmbymwhichmonemofmthemfollowi
ngmstatements?
A) Theminformationmsystemsmmanagermreportsmtomthemtreasurer.
B) Themcreditmmanagermreportsmtomthemtreasurer.
C) Themcontrollermreportsmtomthemchiefmexecutivemofficer.
D) Themtaxmmanagermreportsmtomthemtreasurer.
E) Themcapitalmexpendituresmmanagermreportsmtomthemcontroller.
3) Answeringmwhichmonemofmthemfollowingmquestionsminvolvesmmakingmamcapitalmbudgeti
ngmdecision?
Version 1 2
, A) Howmmuchmdebtmshouldmthemfirmmborrowmfrommamparticularmlender?
B) Shouldmthemfirmmbuildmamnewmproductionmfacility?
C) Shouldmthemfirmmissuemnewmequitymtompaymformitsmgrowthmgoals?
D) Howmmuchminventorymshouldmthemfirmmkeepmonmhand?
E) Howmmuchmcreditmshouldmthemfirmmextendmtomamparticularmcustomer?
4) Whichmonemofmthemfollowingmstatementsmismaccurate?
A) Netmworkingmcapitalmequalsmcurrentmassetsmplusmcurrentmliabilities.
B) Currentmliabilitiesmaremdebtsmthatmmustmbemrepaidminm18mmonthsmormless.
C) Currentmassetsmaremassetsmwithmshortmlives,msuchmasmaccountsmreceivable.
D) Long-termmdebtm ismdefinedmasmamresidualmclaimmonmamfirm’smassets.
E) Tangiblemassetsmaremfixedmassetsmsuchmasmpatents.
5) Amongmthemtypicalmresponsibilitiesmofmthemcorporatemcontrollermis:
A) capitalmexpendituresmmanagement.
B) cashmmanagement.
C) taxmreporting.
D) financialmplanning.
E) creditmmanagement.
6) m ismtypicallymthemresponsibilitymofmthemcorporatemtreasurer.
A) Financialmplanning
B) Costmaccounting
C) Taxmreporting
D) Informationmsystems
E) Financialmaccounting
7) Amfirm’s define(s)mitsmcapitalmstructure.
Version 1 3
, A) mixturemofmvariousmtypesmofmproductionmequipment
B) investmentmselectionsmformitsmexcessmcashmreserves
C) combinationmofmcashmandmcashmequivalents
D) combinationmofmaccountsmappearingmonmthemleftmsidemofmitsmbalancemsheet
E) proportionsmofmfinancingmfrommdebtmandmequity
8) Themfocusmofmshort-termmfinancemismon:
A) themtimingmofmcashmflows.
B) acquiringmandmsellingmfixedmassets.
C) financingmlong-termmprojects.
D) capitalmbudgeting.
E) issuingmadditionalmsharesmofmcommonmstock.
9) Netmworkingmcapitalmincludes:
A) copyrights.
B) manufacturingmequipment.
C) commonmstock.
D) long-termmdebt.
E) inventory.
10) m ismdefinedmasmplanningmandmmanagingmamfirm’smlong-termmassets.
A) Workingmcapitalmmanagement
B) Cashmmanagement
C) Costmaccountingmmanagement
D) Capitalmbudgeting
E) Capitalmstructuremmanagement
11) Anmamountmthemfirmsmowes,mwhichmitmmustmrepaymwithinmtwelvemmonths,mismcalledma(n):
Version 1 4
