Firms using maturity matching will have current ratios equal to 1.0.

Name: Firms using maturity matching will have current ratios equal to 1.0.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Maturity matching is a strategy of matching the maturity of assets and liabilities. This means that long-term assets are financed with long-term liabilities, and short-term assets are financed with short-term liabilities. This strategy does not necessarily result in a current ratio of 1.0, as it depends on the specific assets and liabilities involved.

Firms Using Maturity Matching Will Have Current Ratios Equal to 1.0