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401 Role of Finance
Finance
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 assists | Finance activity involving making decisions about a firms investments |
Asset(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 investments decisions | Decisions That determine which projects a business will invest in, how the investments will be financed and whether to pay dividends and shareholders |
Capital structure | A firms mx 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 investor or stockholder as earning 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 venture capital |
return on capital | A measure of haw well a business generates cash flow 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 firms current balance of assets and liabilities involves accounts payable and receivable , inventory and cash |