Which of the Following Statements About Maturity Matching Strategy Is

question 24

Multiple Choice

Which of the following statements about maturity matching strategy is true?

• A) All seasonal working capital needs are funded with short-term borrowing.
• B) As the level of sales varies seasonally, short-term borrowing fluctuates with the level of seasonal working capital.
• C) All fixed assets are funded with long-term financing.
• D) All of the above

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Definitions:

Sales Journal

A specialized journal used to record all credit sales transactions of a business.

Cost Center

A department or unit within a business that does not directly generate profit but incurs costs, e.g., customer service or research departments.

Profit Center

A branch or division of a company that is directly responsible for generating its portion of the company's overall profit.

Profit Center

A branch or division of a company that is treated as a separate unit for the purpose of calculating its profitability.