click below
click below
Normal Size Small Size show me how
401 Role of Finance
Finance
Term | Definition |
---|---|
accounting | the process of keeping and interpreting financial records |
accounts payable | all monies owed by a business to others |
accounts receivable | all monies owed to a firm by its customers |
acquisition of funds | finance activity involving making decisions about financing |
administrations of assets | finance activity involving making decisions about a firms investments |
assets(s) | anything of value that a business or individual owns |
capital budgeting | a process in which a firms financial managers determine which projects it should invest in |
capital investment decisions | decisions that determine which projects a business will invest in, how the investments(s) will be financed, and whether to pay dividends to shareholders |
capital structure | a firms 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 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 firms current balance of assets and liabilities; involves accounts payable and receivable, inventory, and cash |