Practicing Success
A Sinking Fund is a part of which of the following? |
Reserves and surplus Assets Liabilities None of the above |
Reserves and surplus |
A sinking fund is an account containing money set aside to pay off a debt or bond. Sinking funds may help pay off the debt at maturity or assist in buying back bonds on the open market. Callable bonds with sinking funds may be called back early removing future interest payments from the investor. |