Test Bank for Corporate Finance 13th Edition By Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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ii ii ii Stephen Ross, Randolph Westerfield,
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Chapters 1 - 21, Completeii
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Student name:_ b b




MULTIPLE CHOICE - Choose the one alternative that best completes the statement
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bor answers the question.
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1) Generally, among those who report directly to the
b are the treasurer b b b b b b b b



and theiicontroller of a corporation.
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A) board of directors b b



B) chairperson of the board b b b



C) chief iiexecutive officer
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D) president
E) chief financial officer
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2) A typical chain of command in a corporation is described by which one of
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the followingiistatements?
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A) The b information systems manager reports to the treasurer. b b b b b b


B) The b credit manager reports to the treasurer.
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C) The b controller reports to the chief iiexecutive officer. b b b b b b



D) The b tax manager reports to the treasurer.
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E) The b capital expenditures manager reports to the controller.
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3) Answering which one of the following questions involves making a
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capital budgetingiidecision?
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, A) How much debt should the firm borrow from a particular lender?
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B) Should the firm build a new production facility?
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C) Should the firm issue new equity to pay for its growth goals?
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D) How much inventory should the firm keep on hand?
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E) How much credit should the firm extend to a particular customer?
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4) Which one of iithe following statements is accurate?
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A) Net working capital equals current assets plus current liabilities.
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B) Current liabilities are debts that must be repaid in 18 months or less.
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C) Current assets are assets with short lives, such as accounts receivable.
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D) Long-term debt is defined as a residual claim on a firm’s assets.
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E) Tangible assets are fixed assets such as patents.
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5) Among the typical responsibilities of the corporate controller is:
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A) capital expenditures management.
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B) cash management.
b



C) tax reporting.
b


D) financial planning. b



E) credit management. b




6) is typically the responsibility of the corporate treasurer.
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A) Financial planning b



B) Cost accounting
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C) Tax reporting
b


D) Information systems b



E) Financial accounting b




7) A firm’s
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, A) mixture of various types of production equipment
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B) investment selections for its excess cash reserves
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C) combination of cash and cash equivalents b b b b b



D) combination of accounts appearing on the left side of its balance sheet
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E) proportions of financing from debt and equity
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8) The focus of short-term finance is on:
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A) the timing of iicash flows.
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B) acquiring and selling fixed assets.
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C) financing long-term projects. b b


D) capital budgeting.
b



E) issuing additional shares of iicommon stock.
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9) Net working capital includes:
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A) copyrights.
B) manufacturing equipment. b


C) common stock. b



D) long-term debt. b



E) inventory.



10) is defined as planning and managing a firm’s long-term assets.
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A) Working capital management b b



B) Cash management
b


C) Cost accounting management
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D) Capital budgeting b



E) Capital structure management
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11) An amount the firms owes, which it must repay within twelve months, is called a(n):
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