Question

The maturity matching approach calls for matching the maturities of the firm's: a. long-term liabilities and...

  1. The maturity matching approach calls for matching the maturities of the firm's:

Homework Answers

Answer #1

the maturity matching approach calls for matching of the short-term requirement of debt with short term liabilities, and long term requirement of debt with long term liabilities.

So, the correct answer is option( B) long term liabilities and current liabilities as these two liabilities are to be matched with their appropriate maturities.

Rest of the the options except Option (b) are not correct because the maturity matching concept does not focuses on matching of asset and liabilities or assets and equities.

Hence the correct answer is option (b) long term liabilities and current liabilities.

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