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CUET · MATHS · PYQ PAPER 2025

Choose the correct statement about Sinking Fund?

  1. A It is a long term account which can be closed any time.
  2. B It does not have any specific purpose.
  3. C In this fund, a fixed amount at regular intervals is deposited for a fixed terms
  4. D It can be used in any emergency.
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Answer & Solution

Correct Answer

(C) In this fund, a fixed amount at regular intervals is deposited for a fixed terms

Step-by-step Solution

Detailed explanation

Option A: This is incorrect. A sinking fund is designed to be used for a specific purpose, and it typically has a fixed time frame and conditions for use. It is not meant to be closed arbitrarily. Option B: This is incorrect. A sinking fund has a specific purpose, usually to…
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