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4.01 Vocabulary
Term | Definition |
---|---|
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 Funds | 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 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 investors 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 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 |