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4.01
Business essentials
| Question | Answer |
|---|---|
| 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 |
| Acquisitions of funds | Finance activity involving making decisions about a firm's investments |
| Administration of assets | finance activity involving making decisions about a firm's investments |
| 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 in |
| 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 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 institution to finance a project |
| Dividend | A sum of money paid to an investors or stockholder as earning on an investment |
| 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 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 accounts payable and receivable , inventory, and cash |
| accountant | an individual who has had specialized training and accounting procedures |
| Accounting | The process of keeping The process of keeping financial records |
| Accounting cycle | A process or series of steps that businesses complateto maintain their financial records effectively |
| Accounting standards | Rules that accountants must follow when preparing financial statements |
| accounting system | The methods and procedures used in consistently handling the business's financial information |
| Accrual accounting method | A method of accounting that records transactions at the time they occur even if no money changes hands at the time |
| Assets |
Created by:
daniel.t267
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