A company that matches maturities will generally try to finance its receivables with long-term debt.

Question

Quizplus · Accepted Answer

A company that matches maturities will generally try to finance its receivables with short-term debt, since the goal is to have the debt mature at the same time as the receivables are expected to be collected. This helps to avoid having to pay off long-term debt with funds from short-term receivables, which can cause cash flow problems.

A Company That Matches Maturities Will Generally Try to Finance