CUET · MATHS · PYQ PAPER 2025
Choose the correct statement about Sinking Fund?
- A It is a long term account which can be closed any time.
- B It does not have any specific purpose.
- C In this fund, a fixed amount at regular intervals is deposited for a fixed terms
- D It can be used in any emergency.
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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