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Net capital is computed by starting with net worth, then subtracting non-allowable assets (such as prepaid expenses, unsecured receivables, fixed assets) and applying haircuts to securities values. Customer credit balances are liabilities, not direct deductions from net worth in the computation. Subordinated loans, when approved, may increase net capital. Thus, the correct answer is C.

Non-allowable assets are those not readily convertible into cash within a short timeframe. Prepaid expenses fall into this category since they represent future benefits but cannot be liquidated to meet obligations. Cash, Treasuries, and marketable securities are all allowable assets. Identifying allowable vs. non-allowable assets is essential for accurate net capital computation. Thus, the correct answer is C.

Subordinated debt approved by FINRA is treated as part of regulatory capital, thereby increasing net capital. Prepaids, fixed assets, and unsecured receivables are non-allowable and reduce capital. Thus, B is correct.

The Financial and Operations Principal (FINOP) is directly accountable for certifying the accuracy of financial statements and regulatory filings. While the CEO has overall firm responsibility, the FINOP specifically manages financial compliance. Thus, B is correct.

A matched book transaction occurs when a broker-dealer simultaneously borrows and lends securities through repurchase agreements (repos and reverse repos). This allows the firm to earn a spread on interest rates while managing liquidity needs. For example, the firm may borrow securities (via repo) to cover settlement obligations while lending out excess securities (via reverse repo) for a slightly higher rate, profiting from the difference. This is a common funding tool for large broker-dealers. Options A, C, and D represent unrelated regulatory or operational requirements, not funding strategies. The correct answer is B.