click below
click below
Normal Size Small Size show me how
401 Role of Finance
Finance
Question | Answer |
---|---|
Accounting | The process of keeping and interpreting financial records. |
Accounts payable | All monies owed by the business to others. |
Account receivable | All monies owed 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 firm's investments. |
Assets | Anything of value that a business or individual owns. |
Capital budgeting | A process in which a firm's financial manager determine which project it should invest in. |
Capital investments decisions | Decisions that determine which projects a business will invest in, how the investments 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 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 | 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 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. |