Which of the following is NOT correct about "Sinking Fund"?

It is a long-term fund which can be closed at any time.

The correct answer is Option (4) → It is a long-term fund which can be closed at any time.

Given options about Sinking Fund:

1) It is set up for a particular upcoming expense ✅ Correct

2) A fixed amount at regular intervals is deposited in it ✅ Correct

3) It can be used only for the purpose it was created ✅ Correct

4) It is a long-term fund which can be closed at any time ❌ Not correct, as sinking fund is long-term and cannot be closed arbitrarily

Incorrect statement: It is a long-term fund which can be closed at any time