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BE 4.01

role of finance and nature of accounting

TermDefinition
Accounting The process of keeping and interpreting financial records
Accounts payable All monies owed by the business to others
Accounts receivable All monies owned to a firm by its customers
Acquisition of funds Finance activity involving making decisions about financing
Administration of assets Finance activity involving making decisions about a firms investment
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
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 lean by a bank or other institution to finance a project
dividend
Equity funding
finance
financing
return on capital
Venture capital
Working capital management
Accountant
Created by: omart7
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