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Related Flashcards
Related Topics
Cards In This Set
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Capital Budget
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Highlights a firm's spending plans for major asset purchases that requir large sums of money
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Cash Budget
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Estimates a firm's projected cash inflows and outflows that the firm can use for any cash shortages or surpluses during a given time period
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Operating Budget
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Ties together all of a firm's other budgets, projection of dollar allocations to various costs and expenses need to run business
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Financial Control
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Process in which a firm periodically compares it's actual revenues, costs and expenses with it's budget
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Needs for Operating Funds
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Managing day by day needs of the business
controlling credit operations
aquiring needed inventory
making capitol expenditures
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Capitol Expenditures
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Major investments in either tangible long term assets such as land, buildings and machines or intangible assets such as patents, trade marks and copyrights
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Debt Financing
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Funds borrowed that must be repaid
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Equity Financing
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Funds raised from operations inside the firm or through the sale of stock (ownership in the firm)
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Leverage
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Rasing needed funds through borrowing to increase the firm's rate of return
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Cost of Capital
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The rate of return a company must earn in order to meet the demands of it's lenders and expection of it's share holders.
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