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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 |