Financing Definitions
Financing Definitons
Financing Definitions
Financing Definitions
Fiancing Definitions
100
The strategic planning and budgeting of corporate funds.
What is financial management?
100
They are financial institutions that make loans to companies but they are not considered banks.
What are commercial finance companies?
100
It allows a company to retain profits and cash rather than to make interest payments and to pay back debt.
Why finance with equity?
100
Uses accounting information to guide decision makers outside a company such as investors and lenders.
What is financial accounting?
100
It assures that the accounts are kept in balance.
What is the purpose of double entry bookkeeping?
200
Someone that assumes financial management responsibilities, generally holding an accounting background.
What is a financial manager?
200
Long term
What type of financing is required for capital intensive projects?
200
It dilutes ownership.
What is a disadvantage to financing with equity?
200
Reviewing and evaluating the accuracy of financial reports.
What is auditing?
200
It is a snapshot of a business’s financial condition at a specific time.
What is a balance sheet?
300
It is selling accounts receivable to commercial finance companies.
What is factoring?
300
Venture capitalists, borrowed funds, or raising owners equity.
What are the primary means of obtaining large amounts of long term financing?
300
It tracks a business’s income and expenses by recording financial transactions.
What is accounting?
300
It is required for organizations that are not focused on generating a profit.
What is not for profit accounting?
300
Assets, liabilities, and owners equity.
What does the balance sheet include?
400
Payments are deferred up to 90 days.
What is trade credit?
400
It is using debt to finance a firms assets with the intent that the cost of debt will be less than the rate of return on the financed asset.
What is leverage?
400
The responsibility of gathering and assembling data required for the key financial statements.
What is corporate accounting?
400
Involves preparing tax returns and giving advice on the tax strategies.
What is tax accounting?
400
It reflects the profitability of a company by showing revenue and operating expenses.
What is an income statement?
500
Demand deposit accounts, credit cards, business lines of credit, or secured loans.
What are some financial services that commercial banks offer?
500
It allows a company to use money from investors to create or obtain business assets with out diluting ownership.
Why finance with bonds?
500
Uses accounting information to help make decisions inside a company.
What is managerial accounting?
500
It is a part of the accounting process that is the precise recording of financial transactions.
What is bookkeeping?
500
It is like a checkbook register and involves cash transactions only.
What is a statement of cash flow?
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