BUS 201 Study Guide - Capital Structure, Commercial Paper, Preferred Stock

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 201
• Professor: Peter Tingling

Document Summary

Financial managers: those managers responsible for planning and overseeing the financial resources of a firm. Short term expenditures (operating: accounts payable, unpaid bills owed to suppliers plus wages and taxes due within a year, accounts receivable, funds due from customers who have bought on credit. Credit policy: rules governing a firm"s extension of credit to customer. Inventory: materials and goods currently held by the company that will be sold within the year, raw materials inventory. The portion of a firm"s inventory consisting of basic supplies used to manufacture products for sale: work-in-process inventory. The portion of a firm"s inventory consisting of goods partway through the production process: finished goods inventory. The portion of a firm"s inventory consisting of completed goods ready for sale. Long term expenditures (capital: mainly for fixed assets, lasting use and value, not normally sold or converted to cash, required a very large investment, represent binding commitment of company funds that continues long into the future.