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BE 4.01
FI-354
| Term | Definition |
|---|---|
| Accounting | The process of keeping and interpreting financial records |
| Accounts payable | All monies owned by the business to others |
| Accounts receivable | All monies owned to a firm by its customers |
| Administration of assets | Finance activity involving making decisions about a firm's investments |
| Acquisition of funds | Finance activity involving making decisions about financing |
| Assets | 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 |
| Capital investment decisions | Decisions that determine which projects a business will invest in, how the investments will be financed and whether to pay dividend to shareholders |
| Capital structure | A firms mix of financing, usually some combination of debt an equity |
| Cash conversion cycle | Ratio that refers to the number of day 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 stockholders as earnings on an investments |
| 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 matter |
| 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 account payable and receivable, inventory, and cash |