Practicing Success

Target Exam

CUET

Subject

Accountancy

Chapter

Issue and Redemption of Debentures

Question:
Sinking Fund Investment is which of the following?
Options:
An asset
A liability
An expense
None of the above
Correct Answer:
An asset
Explanation:
A sinking fund is typically listed as a noncurrent asset—or long-term asset—on a company's balance sheet and is often included in the listing for long-term investments or other investments.