CUET Preparation Today
Which of the following is not the specification of the Sinking Fund? |
It is a fixed term account. It can be used in an emergency. A fixed amount at regular intervals is deposited in the Sinking Fund. It is set-up for a particular upcoming expense. |
It can be used in an emergency. |
The correct answer is Option (2) → It can be used in an emergency. $\text{Sinking Fund is created by setting aside fixed amounts at regular intervals}$ $\text{It is meant for a specific upcoming expense or liability (e.g., bond repayment)}$ $\text{It is usually a fixed term arrangement}$ $\text{It is not intended for emergency use}$ $ \text{The statement “It can be used in an emergency” is not a specification of the Sinking Fund}$ |
