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BE 4.01 FI-354

Business Activity

TermDefinition
Accounting the process of keeping and interpreting financial records
accounts payable all monies owed by the business to others
accounts recievable all monies owed to a firm by its customers
acquisition of funds fiance activity involving making decisions about fiancing
administration of assets fiance activity involoving making decisiions about a firm's investments
Asset(s) anything of value that a business or indiviual owns
capital budgeting a process in which a firm's fiancial managers determine which projects it should invest in
capital investment decisions decisions that determine which projects a business will invest in , how the investmenyt(s) will be fianced ,and whether to pay dividends to shareholders
capital structure a firm's mix of financing ,usually some combination of debt and equaity
cash convsersion cycle ratio hat 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 istitution to fiance a project
dividend a sum of money paiid to an investor or stockholder as earnings on an investment
equity funding using money from investors to fiance a project in exchange for shares in the company
finance in business , the fuction 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 realtion to the capital it has already invested in itself
venture capital invested money used for new business opportunties
working capiatll management management of a firm's current balance of assets and liabilities ;involves account payable and receivable ,inventory ,and cash
Created by: ashley.p709
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