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BE 4.01 FI-354
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 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 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 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 |