Which of the following statements are correct?
(A) In the sinking fund a fixed amount at regular intervals is deposited.
(B) Sinking fund is a long-term account which can be closed any time.
(C) In a saving account, any amount, any time can be deposited.
(D) Sinking fund can be used only for the purpose it was created.
Choose the correct answer from the options given below.
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → (A), (C) and (D) only **
(A) In a sinking fund, fixed deposits are made at regular intervals. ✔ Correct
(B) A sinking fund cannot be closed any time; it is meant for a long-term specific purpose. ✘ Incorrect
(C) In a savings account, money can be deposited any time in any amount. ✔ Correct
(D) A sinking fund is created for a specific purpose and must be used only for that purpose. ✔ Correct
Correct statements: (A), (C), (D)