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4.01 vocabulary
Glossary
Term | Definition |
---|---|
Accounting | The process of keeping and interpreting financial records |
Accounts payable | All monies owed by the business to other |
Accounts receivable | All monies owed to a firm by its customer |
Acquisition of funds | Finance activity involving making desisions about financling |
Administraction of assets | Finance activity involving makiing decisions about a firm's investments |
Asset | Anything of value that a business or indivduals 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 it should invest in, how the investment will be financed, and whether to pay dividends to shareholders |
Captial structure | A firm's mix of fanancing, usally some combination of debt and equity |
Cash conversion | ratio that refers to the numbers 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 asearning 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 venure capital |
Return on capital | A measure of how wella business generates cash low in relation to the capital it has already invested i n itself |
Venture capital | Invested money used for new business opportunities |
Working capital management | Management of a firm's current balance of assets and liabilites: involves accounts payable and recivable, inventory, and cash |