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Accounting Concepts
4.01
Term | Definition |
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Accounting | The process of keeping financial records |
Accounts payable | All of the money that is owed by the business to others |
Accounts recieveable | All of the money that is owed to a firm by its cutomers |
Aquisition of funds | Finance activity involving making decisions about money |
Administration of assets | Finance activity involving making decisions about a firm's investments |
Assets | anything of value |
Capital budgeting | a firm's financial managers determine which projects it invests in |
Capital investment decisions | Decisions that determine which projects a business invests in |
Capital structure | A firms 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 reciving cash from selling those products |
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 | 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 weel 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 |