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    Advantages and disadvantages - matching maturities of assets and liabilities

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    What are the advantages of matching maturities of assets and liabilities? What are the disadvantages?

    © BrainMass Inc. brainmass.com June 3, 2020, 8:12 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-liabilities/advantages-disadvantages-maturities-assets-liabilities-127924

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    Financing of Current Assets also involves a trade-off between risk and return. A firm can choose from short- or long-term sources of finance. If the firm uses more of short-term funds for financing both current and fixed assets, its financing policy is considered aggressive and risky. Its financing policy ...

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    This solution explains the advantages and disadvantages of matching maturities of assets and liabilities.

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