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BE 4.01 FI-354
Term | Definition |
---|---|
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 |
Acquisition of funds | Finance activity involving making decisions about financing |
Administration of assets | Finance activity involving making decisions about a firms investment |
Asset(s) | 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 investment(s) will be financed, and whether to pay dividends to share holders |
Capital structure | A firms mix of financing, usually some combination of debt and equity |
Cash conversation cycle | Ratio that refers to the number of days between a company paying for materials and receiving cash from selling the products made from those raw materials |
Debt funding | Using money that is lent by bank or the 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 t=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 |