Which of the following statements about maturity matching strategy is true? Group of answer choices All answeres are correct. All fixed assets are funded with long-term financing. As the level of sales varies seasonally, short-term borrowing fluctuates with the level of seasonal working capital. All seasonal working capital needs are funded with short-term borrowing.

Maturity matching or hedging approach is a strategy of working capital financing wherein we finance short-term requirements with short-term debts and long-term requirements with long-term debts.
The underlying principle is that each asset should be financed with a financial instrument having almost the same maturity.

Option (A) is correct as it is stated in the definition above the requirements of that long term are financed by long-term loans.

Option (B) is correct as the sales vary and the requirements and the funds needed keep fluctuating.

Option (C) is correct as working capital is used to fund short-term requirements in the company.

Therefore, the correct option is (D) all answers are correct.

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Complete question:

Which of the following statements about maturity matching strategy is true? Group of answer choices.

(A) All fixed assets are funded with long-term financing.

(B) As the level of sales varies seasonally, short-term borrowing fluctuates with the level of seasonal working capital.

(C) All seasonal working capital needs are funded with short-term borrowing.

(D) All answers are correct.