Short-term financial planning involves much more of the firm’s operations than working capital management alone; it extends to management of all of the firm’s current assets and current liabilities and their interrelationship. In practice, financial managers make little or no distinction between investment decisions involving current assets and financing decisions involving current liabilities. Current assets and current liabilities often are too closely related for such separate treatment. Both current asset and current liability accounts increase simultaneously, providing financing (at least in the short run) for the investment. For example, when the firm obtains inventory on credit, it generates an account payable. This is called spontaneous financing.