The Maturity Matching, or "Self-Liquidating," Approach to Financing Involves Obtaining

question 92

True/False

The maturity matching, or "self-liquidating," approach to financing involves obtaining the funds for permanent current assets with a combination of long-term capital and short-term capital that varies depending on the level of interest rates.When short-term rates are relatively high, short-term assets will be financed with long-term debt to reduce costs.

---

Definitions:

Equity

The stake or ownership interest shareholders have in a company, represented by their shares of stock.

Chart Of Accounts

A systematic list of account titles and numbers used by a company to organize its financial transactions and prepare financial statements.

Identification Number

A unique sequence of numbers and/or letters assigned to individuals, products, or entities for identification purposes.

Accounts Used

Specific accounts utilized in accounting to record and track financial transactions.