Test Bank for Corporate Finance
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13th Edition By Stephen Ross, Randolph Westerfield, Ch
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apters 1 - 21, Complete
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Version=1 1
,Chapter 1=
Student name:_
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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
7) A=firm’s define(s)=its=capital=structure.
Version=1 3
, 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
11) An=amount=the=firms=owes,=which=it=must=repay=within=twelve=months,=is=called=a(n):
Version=1 4
= = = = =
13th Edition By Stephen Ross, Randolph Westerfield, Ch
= = = = = = =
apters 1 - 21, Complete
= = = =
Version=1 1
,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
7) A=firm’s define(s)=its=capital=structure.
Version=1 3
, 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
11) An=amount=the=firms=owes,=which=it=must=repay=within=twelve=months,=is=called=a(n):
Version=1 4
