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BE 4.01
FI-354
Term | Definition |
---|---|
Accounting | The process of keeping and interpreting financial records |
Accounts payable | All monies owned by the business to others |
Accounts receivable | All monies owned to a firm by its customers |
Administration of assets | Finance activity involving making decisions about a firm's investments |
Acquisition of funds | Finance activity involving making decisions about financing |
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 |
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 firms mix of financing, usually some combination of debt an equity |
Cash conversion cycle | Ratio that refers to the number of day 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 stockholders as earnings on an investments |
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 matter |
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 account payable and receivable, inventory, and cash |