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