CUET · MATHS · PYQ PAPER 2023
Which of the following is NOT true?
- A Sinking fund is established to set aside revenue for a future expense
- B Sinking funds are the same as savings account
- C Sinking fund is set up for a particular purpose
- D Sinking funds are to be used at a particular time
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…
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