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 financials 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 investments |
Asset(s) | anything value that a business or individual owns |
capital budgeting | a process in which 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 investment(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 project |
dividend | a sum of money paid to and investor or stockholder as earnings on investments |
equity funding | using money from investors to finance a project in exchange for shares in the company |
Finance | in a business, the function that involves all the money and money management matters |
Financing | funding a business activity or project through debt, equity or venture capital |
return 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 managements | management of firms current balance of assets and liabilities; involves accounts payable and receivable, inventory, and cash |