PRC-2 · Chapter 2 · Question 45 of 45
A 'Sinking Fund' is established primarily to:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Save up a specific sum of money over time to replace an asset or repay a debt in the future.
Explanation
Companies use sinking funds to ensure they have enough cash on hand to meet large future obligations by setting aside regular contributions.
More Coordinate System and Its Application MCQs
- Q2If a point B is plotted at coordinates (12, 18), what does the number 12 represent?
- Q3What is the slope of the straight line defined by the equation y = 5 - 4x?
- Q4If a straight line has a slope of 2, what is the slope of a line that is perfectly perpendicular to it?
- Q5What are the y-intercept and the slope of the equation 2y = 8 - 6x?
- Q6The mathematical equation y = c represents a straight line that is: