Duration Accounting is a method used to measure the sensitivity of a financial asset's price to changes in interest rates. It focuses on the time it takes for cash flows from an investment to be received, helping investors understand the risk associated with interest rate fluctuations. This approach is particularly useful for fixed-income securities, such as bonds, where the timing of cash flows is crucial. By calculating the duration of an asset, investors can make more informed decisions about their portfolios and manage interest rate risk effectively.