How do firms manage cash, financing, and long-term investments?

"Accounts payable: Purchases for which a buyer has not yet paid the seller. Accounts receivable: Sales for which a firm has not yet been paid. Capital budgeting: The process of analyzing long-term projects and selecting those that offer the best returns while maximizing the firm’s value. Capital expenditures: Investments in long-lived assets, such as land, buildings, machinery, equipment, and information services, that are expected to provide benefits over a period longer than one year. Cash flows: The inflow and outflow of cash for a firm. Cash management: The process of making sure that a firm has enough cash on hand to pay bills as they come due and to meet unexpected expenses. Financial management: The art and science of managing a firm’s money so that it can meet its goals. Financial risk: The chance that a firm will be unable to make scheduled interest and principal payments on its debt. Line of credit: An agreement between a bank and a business that specifies the maximum amount of unsecured short-term borrowing the bank will allow the firm over a given period, typically one year. Marketable securities: Short-term investments that are easily converted into cash. Mortgage loan: A long-term loan made against real estate as collateral."