Test Bank for Corporate Finance 12th Edition by Ross
m m m m m m m m m
All Chapter 1-27 Fully Covered
m m m m m
,Corporatem Finance,m 12em (Ross)
Chapter 1 Introduction to Corporate Finance
m m m m m
1) Themtreasurermandmthemcontrollermofmamcorporationmgenerallymreportmtomthe:
A) boardmofmdirectors.
B) chairmanmofmthemboard.
C) chiefmexecutivemofficer.
D) president.
E) chiefmfinancialmofficer.
Answer:mm EmDiffic
ulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
2) Whichmonemofmthemfollowingmstatementsmcorrectlymdepictsmthemcommonmchainmofmcomm
andminmam corporation?
A) Theminformationmsystemsmmanagermreportsmtomthemtreasurer.
B) Themcreditmmanagermreportsmtomthemtreasurer.
C) Themcontrollermreportsmtomthemchiefmexecutivemofficer.
D) Themtaxmmanagermreportsmtomthemtreasurer.
E) Themcapitalmexpendituresmmanagermreportsmtomthemcontroller.
Answer:mm BmDiffic
ulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
3) Whichmonemofmthemfollowingmismamcapitalmbudgetingmdecision?
A) Determiningmhowmmuchmdebtmshouldmbemborrowedmfrommamparticularmlender
B) Decidingmwhethermormnotmamnewmproductionmfacilitymshouldmbembuilt
C) Decidingmwhenmtomrepaymamlong-termmdebt
D) Determiningmhowmmuchminventorymtomkeepmonmhand
E) Decidingmhowmmuchmcreditmtomgrantmtomamparticularmcustomer
Answer:mm B
,Difficulty:m1mEasy
Section:mm1.1mWhatmismCorporatemFinance?
m Topic:mmCapitalmbudgeting
Bloom's: UnderstandmAACSB:
Reflectivem Thinkingm Accessibili
ty:mm KeyboardmNavigation
4) Whichmonemofmthesemismamcorrectmdefinition?
A) Netmworkingmcapitalmequalsmcurrentmassetsmplusmcurrentmliabilities.
B) Currentmliabilitiesmaremdebtsmthatmmustmbemrepaidminm18mmonthsmormless.
C) Currentmassetsmaremassetsmwithmshortmlives,msuchmasmaccountsmreceivable.
D) Long-termmdebtmismdefinedmasmamresidualmclaimmonmamfirm'smassets.
E) Tangiblemassetsmaremfixedmassetsmsuchmasmpatents.
Answer:
C
mDifficulty:m1mEasy
Section:m1.1m Whatm ism Corporatem Finance?
m Topic:m Introductionm tom corporatem financ
em Bloom's:m Remember
AACSB: Reflective
Thinkingm Accessibility:m
m KeyboardmNavigation
5) Themcorporatemcontrollermismgenerallymresponsiblemformwhichmonemofmthesemfunctions?
A) Capitalmexpenditures
B) Cashmmanagement
C) Taxmreporting
D) Financialmplanning
E) Creditmmanagement
Answer:mm CmDiffic
ulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
6) Themcorporatemtreasurermoverseesmwhichmonemofmthesemareas?
A) Financialmplanning
B) Costmaccounting
C) Taxmreporting
D) Informationmsystems
E) Financialmaccounting
Answer:mm A
, Difficulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
7) Amfirm'smcapitalmstructuremrefersmtomthemfirm's:
A) mixturemofmvariousmtypesmofmproductionmequipment.
B) investmentmselectionsmformitsmexcessmcashmreserves.
C) combinationmofmcashmandmcashmequivalents.
D) combinationmofmaccountsmappearingmonmthemleftmsidemofmitsmbalancemsheet.
E) proportionsmofmfinancingmfrommcurrentmandmlong-termmdebtmandmequity.
Answer:mm EmDiffic
ulty:m1mEasy
Section:mm1.1mWhatmismCorporatemFinance?
m Topic:mmCapitalmstructure
Bloom's: Rememberm AACSB:
Reflectivem Thinkingm Accessibili
ty:mm KeyboardmNavigation
8) Short-termmfinancemdealsmwith:
A) themtimingmofmcashmflows.
B) acquiringmandmsellingmfixedmassets.
C) financingmlong-termmprojects.
D) capitalmbudgeting.
E) issuingmadditionalmsharesmofmcommonmstock.
Answer:mm AmDiffic
ulty:m1mEasy
Section:mm1.1mWhatmismCorporatemFina
nce?m Topic:mmCashmmanagementm-
mgeneral m Bloom's: Understand
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
m m m m m m m m m
All Chapter 1-27 Fully Covered
m m m m m
,Corporatem Finance,m 12em (Ross)
Chapter 1 Introduction to Corporate Finance
m m m m m
1) Themtreasurermandmthemcontrollermofmamcorporationmgenerallymreportmtomthe:
A) boardmofmdirectors.
B) chairmanmofmthemboard.
C) chiefmexecutivemofficer.
D) president.
E) chiefmfinancialmofficer.
Answer:mm EmDiffic
ulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
2) Whichmonemofmthemfollowingmstatementsmcorrectlymdepictsmthemcommonmchainmofmcomm
andminmam corporation?
A) Theminformationmsystemsmmanagermreportsmtomthemtreasurer.
B) Themcreditmmanagermreportsmtomthemtreasurer.
C) Themcontrollermreportsmtomthemchiefmexecutivemofficer.
D) Themtaxmmanagermreportsmtomthemtreasurer.
E) Themcapitalmexpendituresmmanagermreportsmtomthemcontroller.
Answer:mm BmDiffic
ulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
3) Whichmonemofmthemfollowingmismamcapitalmbudgetingmdecision?
A) Determiningmhowmmuchmdebtmshouldmbemborrowedmfrommamparticularmlender
B) Decidingmwhethermormnotmamnewmproductionmfacilitymshouldmbembuilt
C) Decidingmwhenmtomrepaymamlong-termmdebt
D) Determiningmhowmmuchminventorymtomkeepmonmhand
E) Decidingmhowmmuchmcreditmtomgrantmtomamparticularmcustomer
Answer:mm B
,Difficulty:m1mEasy
Section:mm1.1mWhatmismCorporatemFinance?
m Topic:mmCapitalmbudgeting
Bloom's: UnderstandmAACSB:
Reflectivem Thinkingm Accessibili
ty:mm KeyboardmNavigation
4) Whichmonemofmthesemismamcorrectmdefinition?
A) Netmworkingmcapitalmequalsmcurrentmassetsmplusmcurrentmliabilities.
B) Currentmliabilitiesmaremdebtsmthatmmustmbemrepaidminm18mmonthsmormless.
C) Currentmassetsmaremassetsmwithmshortmlives,msuchmasmaccountsmreceivable.
D) Long-termmdebtmismdefinedmasmamresidualmclaimmonmamfirm'smassets.
E) Tangiblemassetsmaremfixedmassetsmsuchmasmpatents.
Answer:
C
mDifficulty:m1mEasy
Section:m1.1m Whatm ism Corporatem Finance?
m Topic:m Introductionm tom corporatem financ
em Bloom's:m Remember
AACSB: Reflective
Thinkingm Accessibility:m
m KeyboardmNavigation
5) Themcorporatemcontrollermismgenerallymresponsiblemformwhichmonemofmthesemfunctions?
A) Capitalmexpenditures
B) Cashmmanagement
C) Taxmreporting
D) Financialmplanning
E) Creditmmanagement
Answer:mm CmDiffic
ulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
6) Themcorporatemtreasurermoverseesmwhichmonemofmthesemareas?
A) Financialmplanning
B) Costmaccounting
C) Taxmreporting
D) Informationmsystems
E) Financialmaccounting
Answer:mm A
, Difficulty:m1mEasy
Section:mm 1.1mWhatmismCorporatemFinance
?m Topic:m Managementmorganizationmand
mroles m Bloom's: Remember
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
7) Amfirm'smcapitalmstructuremrefersmtomthemfirm's:
A) mixturemofmvariousmtypesmofmproductionmequipment.
B) investmentmselectionsmformitsmexcessmcashmreserves.
C) combinationmofmcashmandmcashmequivalents.
D) combinationmofmaccountsmappearingmonmthemleftmsidemofmitsmbalancemsheet.
E) proportionsmofmfinancingmfrommcurrentmandmlong-termmdebtmandmequity.
Answer:mm EmDiffic
ulty:m1mEasy
Section:mm1.1mWhatmismCorporatemFinance?
m Topic:mmCapitalmstructure
Bloom's: Rememberm AACSB:
Reflectivem Thinkingm Accessibili
ty:mm KeyboardmNavigation
8) Short-termmfinancemdealsmwith:
A) themtimingmofmcashmflows.
B) acquiringmandmsellingmfixedmassets.
C) financingmlong-termmprojects.
D) capitalmbudgeting.
E) issuingmadditionalmsharesmofmcommonmstock.
Answer:mm AmDiffic
ulty:m1mEasy
Section:mm1.1mWhatmismCorporatemFina
nce?m Topic:mmCashmmanagementm-
mgeneral m Bloom's: Understand
AACSB:
ReflectivemThinkingm A
ccessibility:m KeyboardmNavigation
