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Accounting Concepts

4.01

TermDefinition
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
Created by: GabrielRO
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