The Principle of Duration Matching Is Not

question 74

Multiple Choice

The principle of duration matching is not

• A)used only in bond portfolio management.
• B)a useful concept for investments with target dates.
• C)a means matching one's assets to one's objectives.
• D)a useful concept for investments with target dates or a means matching one's assets to one's objectives.
• E)None of the options

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Definitions:

Accounts Receivable

Outstanding payments from customers for goods or services received from a company but not yet settled.

Adjusting Entry

An accounting entry made at the end of an accounting period to allocate revenue and expenses to the period in which they actually occurred.

Liability Account

A type of financial account which represents a company's legal debts or obligations that arise during the course of business operations.

Expense Account

An account used in accounting to track expenditures related to the operation of a business, including costs for goods, services, and operational activities.