Which of the following are correct about the Sinking Fund?

(A) It is a fixed term account.
(B) It is a set-up for a particular upcoming expense.
(C) A fixed amount at regular intervals is deposited in the Sinking Fund.
(D) It can be used in any emergency.

Choose the correct answer from the options given below:

(A), (B) and (C) only

The correct answer is Option (2) → (A), (B) and (C) only

A sinking fund is created for a specific future expense and requires fixed periodic deposits.

(A) It is a fixed term account. ✔

(B) It is a set-up for a particular upcoming expense. ✔

(C) A fixed amount at regular intervals is deposited in the Sinking Fund. ✔

(D) It can be used in any emergency. ✘

Correct statements: (A), (B), (C)