Which of the following statements about the Sinking Fund are correct? (A) It is a fund established by a business entity by setting aside revenue over…
CUET UG 2025 — Mathematics Statistics & Applications
Which of the following statements about the Sinking Fund are correct?
(A) It is a fund established by a business entity by setting aside revenue over a period of time to fund a future capital expense.
(B) It is a fund established by a business entity by setting aside revenue over a period of time to fund a future repayment of a long-term debt.
(C) It is set up for any purpose that it may serve.
(D) It is a fund that is accumulated for the purpose of paying off a financial obligation at some future designated date.
Choose the correct answer from the options given below:
Held on 13 May 2025 · Verified 13 Jul 2026.
Options
- A
(A), (B) and (D) only
- B
(A), (B) and (C) only
- C
(A), (B), (C) and (D)
- D
(C) and (D) only
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