Finance

Decisions about financing refer to the

Acquisition of funds

Selling shares in the company to raise money for a new venture is referred to as __________ funding.

equity

A company's current balance of assets and liabilities falls under the focus of

working capital management.

A capital investment decision:

How to finance investments

To keep communication flowing with other departments, the finance function depends on

Information systems

How does the finance function relate to company spending?

It plans and controls spending

Is a measure of how well a business generates cash flow:

Return on capital

Money the business owes is known as

accounts payable

Money owed to the business is known as

accounts receivable

The cash conversion cycle should be

as short as possible

When return on capital is positive, the company is

growing in value.

The finance function ensures that the company's financial goals are

in line with organizational priorities.

The administration of assets refers to decision about

investments

Finance is the business function that involves managing

money

The finance function would definitely be involved in a decision regarding

new business projects and strategies

Accounting is distinct from finance because its main focus is on

record keeping activities

The goals of the finance function are to ensure profitability and

reduce risks

The finance function is usually responsible for which of the following process:

Budgeting

A key component of managing working capital

Cash conversion cycle

Determining which projects a business should invest in is known as

capital budgeting