Maturity Transformation Is Converting _____ Liabilities into _____ Assets

question 42

Multiple Choice

Maturity transformation is converting _____ liabilities into _____ assets.

• A)short-term; long-term
• B)short-term; short-term
• C)long-term; long-term
• D)long-term; short-term

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Definitions:

Cash Proceeds

The actual amount of money received from transactions such as sales, financing, or the sale of assets.

Book Value

Book value is the net value of a company's assets found on its balance sheet, and is calculated by subtracting total liabilities from total assets.

Depletion Cost Per Unit

The expense associated with extracting natural resources, calculated by dividing the total depletion expense by the quantity of resources withdrawn.

Natural Resource

Materials or substances such as minerals, forests, water, and fertile land that occur in nature and can be used for economic gain.