Chapter 1:__________ 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? 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.