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BE 4.01

Fl-354

TermDefinition
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 and financing
administration of assets finance activity involving making decisions and a firm's investments
assets(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 decision decision 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 equality
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
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 himself
venture capital invested money used for new business opportunitites
working capital management managements of a firm's current balance of assets and liabilities; involve accounts payable and receivable, inventory, and cash
dividend a sum of money paid to an investor or stockholder as earnings on an investments
Created by: sabria.j297
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