Problem:
Do you think that the accounting method that an entity uses affects its maturity matching? For example, most corporations operate under a full accrual system where revenues are recognized when they are earned and expenses are recognized when they are incurred. Most small businesses operate on a cash basis -- revenue is recognized when it is received and expenses are recognized when they are paid (like a checkbook). Most government operates on modified accrual -- cash basis from January 1 through December 30, revert to full accrual on December 31, and right back to cash basis. Do you think an entity's accounting basis correlate to their maturity matching?