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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 costumers |
| Acquisition of funds | Finance activity involving making decisions about financing |
| Administration of assests | Finance activity involving making decisions about a firm's investment |
| Asses(s) | Anything of value that a business or individual owns |
| Capital budgeting | A process in which a firm's financial manager determine which projects it should invest in |
| Capital investment decisions | Decisions that determine which projects a business will invest in, how the investments(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 institutions to finance a project |
| Dividend | A sum of money paid to an investor or stockholder as earning on an investment |
| Equity finding | Using money that is lent by a bank or other institution to finance a project |
| 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 caital |
| Return on capital | A measure of hoe well a business generates cash flow in relation to the capital it has already invested in itself |
| Venture capital | Invested money used for a 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 |