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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 a firms investments |
Administration of assets | Finance activity involving making decisions about a firms investments |
Assets | Anything of value that a business or individual |
Capital budgeting | A process in which a firms financial managers determine which projects it should invest in |
Capital investment decisions | Decisions that determine which projects a business will invest in how the investments will be financed and whether to pay dividends to shareholders |
capital structure | A firm mix of financing usually some combination of debt and equity |
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 earnings on an investment |
Equity 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 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 relations to the capital it has already invested in itself |
Venture capital | Invested money used for new business opportunities |
Working capital management | Management of a firms current balance of assets and liabilities involves accounts payable receivable inventory an cash |