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401 Role of Finance
Finance
Question | Answer |
---|---|
Accounting | The process of keeping and interpreting financial records. |
Accounts Payable | All monies owed by the business to others. |
Accounts Receivable | All monies owed to a firm by its customers. |
Acquisition of funds | Finance activity involving making decisions about financing. |
Administration of assets | Finance activity involving making decisions about a firm's investments. |
Asset(s) | Anything of value that a business or individual owns. |
Capital Budgeting | A process in which a firm's financial managers determine which projects it should invest in. |
Capital Investment decisions | Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders. |
Capital structure | A firm's mix of financing, usually some combination of debt and quality. |
Cash Conversion Cycle | Ratio that refers to the number of days between a company paying for raw materials and receiving cash from selling the products made from those raw materials. |
Debt Funding | Using money that is lent by a bank or other institution to finance a project. |
Dividend | A sum of money paid to an investor or stockholder as earning on an investment. |
Equality Funding | Using money from investors to finance a project in exchange for shares in the company. |
Finance | In business, the function that involves all money and money management matters. |
Financing | Funding on a business activity or project through debt, equity, or venture capital. |
Return on Capital | A measure of how well a business generates cash flow in relation to the capital it has already invested in itself. |
Venture Capital | Invested money used for new business opportunities. |
Working Capital management | Management of a firm's current balance of assets and liabilities; involves accounts payable and receivable. inventory, and cash. |