Test Bank for Corporate Finance
x x x x x
13th Edition By Stephen Ross, Randolph Westerfield,
x x x x x x
x Chapters 1 - 21, Complete
x x x x
Version 1
x1
,Chapter 1 x
Student name:_
x x
MULTIPLE xCHOICE x- xChoose xthe xone xalternative xthat xbest xcompletes xthe xstatement xor
xanswers xthe x question.
1) Generally, xamong xthose xwho xreport xdirectly xto xthe are xthe xtreasurer xand
xthexcontroller xof xa xcorporation.
A) board xof xdirectors
B) chairperson xof xthe xboard
C) chief xexecutive xofficer
D) president
E) chief xfinancial xofficer
2) A xtypical xchain xof xcommand xin xa xcorporation xis xdescribed xby xwhich xone xof xthe
x followingxstatements?
A) The xinformation xsystems xmanager xreports xto xthe xtreasurer.
B) The xcredit x manager xreports xto xthe xtreasurer.
C) The xcontroller xreports xto xthe xchief xexecutive xofficer.
D) The xtax xmanager xreports xto xthe xtreasurer.
E) The xcapital xexpenditures xmanager xreports xto xthe xcontroller.
3) Answering xwhich xone xof xthe x following xquestions xinvolves xmaking xa xcapital
xbudgetingxdecision?
Version 2
x1
, A) How xmuch xdebt xshould xthe xfirm xborrow xfrom xa xparticular x lender?
B) Should xthe xfirm xbuild xa xnew xproduction xfacility?
C) Should xthe xfirm xissue xnew xequity xto x pay xfor xits xgrowth xgoals?
D) How xmuch xinventory xshould xthe x firm xkeep xon xhand?
E) How xmuch xcredit xshould xthe xfirm xextend xto xa xparticular xcustomer?
4) Which xone xof xthe xfollowing xstatements xis xaccurate?
A) Net xworking xcapital xequals xcurrent xassets xplus xcurrent xliabilities.
B) Current xliabilities xare xdebts xthat xmust xbe xrepaid xin x18 xmonths xor xless.
C) Current xassets xare xassets xwith xshort xlives, xsuch xas xaccounts xreceivable.
D) Long-term xdebt xis xdefined xas xa xresidual xclaim xon xa xfirm’s xassets.
E) Tangible xassets xare xfixed xassets xsuch xas xpatents.
5) Among xthe xtypical xresponsibilities xof xthe xcorporate xcontroller x is:
A) capital xexpenditures xmanagement.
B) cash xmanagement.
C) tax xreporting.
D) financial xplanning.
E) credit xmanagement.
6) x is xtypically xthe xresponsibility xof xthe xcorporate xtreasurer.
A) Financial xplanning
B) Cost xaccounting
C) Tax xreporting
D) Information xsystems
E) Financial xaccounting
7) A xfirm’s define(s) x its xcapital xstructure.
Version 3
x1
, A) mixture xof xvarious xtypes xof xproduction xequipment
B) investment xselections xfor xits xexcess xcash xreserves
C) combination xof xcash xand xcash xequivalents
D) combination xof xaccounts xappearing xon xthe x left x side xof xits xbalance xsheet
E) proportions xof xfinancing xfrom xdebt x and xequity
8) The xfocus xof xshort-term xfinance xis xon:
A) the xtiming xof xcash xflows.
B) acquiring xand xselling xfixed xassets.
C) financing xlong-term xprojects.
D) capital xbudgeting.
E) issuing xadditional xshares xof xcommon xstock.
9) Net xworking xcapital xincludes:
A) copyrights.
B) manufacturing xequipment.
C) common xstock.
D) long-term xdebt.
E) inventory.
10) x is xdefined xas xplanning xand xmanaging xa xfirm’s xlong-term xassets.
A) Working xcapital xmanagement
B) Cash xmanagement
C) Cost xaccounting xmanagement
D) Capital xbudgeting
E) Capital xstructure xmanagement
11) An xamount xthe xfirms xowes, xwhich xit xmust x repay xwithin xtwelve xmonths, x is xcalled xa(n):
Version 4
x1
x x x x x
13th Edition By Stephen Ross, Randolph Westerfield,
x x x x x x
x Chapters 1 - 21, Complete
x x x x
Version 1
x1
,Chapter 1 x
Student name:_
x x
MULTIPLE xCHOICE x- xChoose xthe xone xalternative xthat xbest xcompletes xthe xstatement xor
xanswers xthe x question.
1) Generally, xamong xthose xwho xreport xdirectly xto xthe are xthe xtreasurer xand
xthexcontroller xof xa xcorporation.
A) board xof xdirectors
B) chairperson xof xthe xboard
C) chief xexecutive xofficer
D) president
E) chief xfinancial xofficer
2) A xtypical xchain xof xcommand xin xa xcorporation xis xdescribed xby xwhich xone xof xthe
x followingxstatements?
A) The xinformation xsystems xmanager xreports xto xthe xtreasurer.
B) The xcredit x manager xreports xto xthe xtreasurer.
C) The xcontroller xreports xto xthe xchief xexecutive xofficer.
D) The xtax xmanager xreports xto xthe xtreasurer.
E) The xcapital xexpenditures xmanager xreports xto xthe xcontroller.
3) Answering xwhich xone xof xthe x following xquestions xinvolves xmaking xa xcapital
xbudgetingxdecision?
Version 2
x1
, A) How xmuch xdebt xshould xthe xfirm xborrow xfrom xa xparticular x lender?
B) Should xthe xfirm xbuild xa xnew xproduction xfacility?
C) Should xthe xfirm xissue xnew xequity xto x pay xfor xits xgrowth xgoals?
D) How xmuch xinventory xshould xthe x firm xkeep xon xhand?
E) How xmuch xcredit xshould xthe xfirm xextend xto xa xparticular xcustomer?
4) Which xone xof xthe xfollowing xstatements xis xaccurate?
A) Net xworking xcapital xequals xcurrent xassets xplus xcurrent xliabilities.
B) Current xliabilities xare xdebts xthat xmust xbe xrepaid xin x18 xmonths xor xless.
C) Current xassets xare xassets xwith xshort xlives, xsuch xas xaccounts xreceivable.
D) Long-term xdebt xis xdefined xas xa xresidual xclaim xon xa xfirm’s xassets.
E) Tangible xassets xare xfixed xassets xsuch xas xpatents.
5) Among xthe xtypical xresponsibilities xof xthe xcorporate xcontroller x is:
A) capital xexpenditures xmanagement.
B) cash xmanagement.
C) tax xreporting.
D) financial xplanning.
E) credit xmanagement.
6) x is xtypically xthe xresponsibility xof xthe xcorporate xtreasurer.
A) Financial xplanning
B) Cost xaccounting
C) Tax xreporting
D) Information xsystems
E) Financial xaccounting
7) A xfirm’s define(s) x its xcapital xstructure.
Version 3
x1
, A) mixture xof xvarious xtypes xof xproduction xequipment
B) investment xselections xfor xits xexcess xcash xreserves
C) combination xof xcash xand xcash xequivalents
D) combination xof xaccounts xappearing xon xthe x left x side xof xits xbalance xsheet
E) proportions xof xfinancing xfrom xdebt x and xequity
8) The xfocus xof xshort-term xfinance xis xon:
A) the xtiming xof xcash xflows.
B) acquiring xand xselling xfixed xassets.
C) financing xlong-term xprojects.
D) capital xbudgeting.
E) issuing xadditional xshares xof xcommon xstock.
9) Net xworking xcapital xincludes:
A) copyrights.
B) manufacturing xequipment.
C) common xstock.
D) long-term xdebt.
E) inventory.
10) x is xdefined xas xplanning xand xmanaging xa xfirm’s xlong-term xassets.
A) Working xcapital xmanagement
B) Cash xmanagement
C) Cost xaccounting xmanagement
D) Capital xbudgeting
E) Capital xstructure xmanagement
11) An xamount xthe xfirms xowes, xwhich xit xmust x repay xwithin xtwelve xmonths, x is xcalled xa(n):
Version 4
x1
