Term
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Definition
| the function in a business that acquires funds for the firm and manages those funds within the firm |
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Term
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Definition
| the job of managing a firm's resources so it can meet its goals and obbjectives |
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| managers who examine financial data prepared by accountants and recommend strategies for improving the financial performance of the firm |
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Definition
| forecast that predicts revenues, costs, and expenses for a period of one year or less |
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Definition
| forecast that predicts the cash inflows and outflows in future periods, usually months or quarters |
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Definition
| forecast that predicts revenues, costs and expenses for a period longer than 1 year, and sometimes as far as 5 or 10 years into the future |
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Definition
| a financial plan that sets forth managements expectation, and, on the basis of those expectations, allocates the use of specific resources throughout the firm |
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Definition
| a budget that highlights a firm's spending plans for major asset purchases that often require large sums of money |
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Definition
| a budget that estimates cash inflows and outflows during a particular period like a month or a quarter |
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| Operating (or master) Budget |
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Definition
| the budget that ties together the firm's other budgets and summarizes its proposed financial activities |
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Definition
| a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget |
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Definition
| major investments in either tangible long-term assets such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights |
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| funds raised through various forms of borrowing that must be repaid |
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Definition
| money raised from withing the firm, from operations or through the sale of ownership in the firm (stock) |
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Definition
| funds needed for a year or less |
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Definition
| funds needed for more than a year (usually 2 to 10 years) |
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Definition
| the practice of buying goods and services now and paying for them later |
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Definition
| a written contract with a promise to pay a supplier a specific sum of money at a definite time |
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| a loan backed by collateral, something valuable such as property |
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| a loan that doesn't require any collateral |
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Definition
| a given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available |
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Term
| Revolving Credit Agreement |
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Definition
| a line of credit that's guaranteed but usually comes with a fee |
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Term
| Commercial Finance Companies |
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Definition
| organizations that make short-term loans to borrowers who offer tangible assets as collateral |
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Definition
| the process of selling accounts receivable for cash |
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Definition
| unsecured promissory notes of $100,000 and up that mature (come due) in 270 days or less |
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Definition
| a promissory note that requires the borrower to repay the loan in specified installments |
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Definition
| the principle that the greater the risk a lender takes in making a loan, the higher the interest rate required |
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Definition
| the terms of agreement in a bond issue |
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Definition
| a bond is issued with some form of collateral |
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Definition
| a bond backed only by the reputation of the issuer; also called a debenture bond |
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Definition
| money that is invested in new or emerging companies that are perceived as having great profit potential |
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Term
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Definition
| raising needed funds through borrowing to increase a firm's rate of return |
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Definition
| the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders |
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