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6.02 Key Terms

TermDefinition
Accounting The process of keeping and interpreting financial records. Career Opps in Finance, FI LAP 5, FI LAP 7, PD LAP 15, SM LAP 1)
Finance The process of obtaining funds and using them to achieve the goals of the business (PD LAP 15, SM LAP 1)
Capital Investment Decisions Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to shareholders. (FI LAP 7)
Working Capital Management Management of a firm’s current balance of assets and liabilities; involves accounts payable and receivable, inventory and cash. (FI LAP 7)
Cash Conversion Cycle of Working Capital Management Ratio that refers to the number of days between a company’s paying for raw materials and receiving cash from selling the products made from those raw materials. (FI LAP 7)
Return on Capital A measure of how well a business generates cash flow in relation to the capital it has already invested in itself. (FI LAP 7)
Created by: drakon0130
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