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CUET · MATHS · PYQ PAPER 2023

Which of the following is NOT true?

  1. A Sinking fund is established to set aside revenue for a future expense
  2. B Sinking funds are the same as savings account
  3. C Sinking fund is set up for a particular purpose
  4. D Sinking funds are to be used at a particular time
Verified Solution

Answer & Solution

Correct Answer

(B) Sinking funds are the same as savings account

Step-by-step Solution

Detailed explanation

While both involve setting aside money, a sinking fund is a specific financial strategy created for a predefined purpose and timeline (such as repaying debt or replacing an asset), whereas a savings account is a general-purpose vehicle for liquid funds. Options A, C, and D are…