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A bond sinking fund is a restricted asset of a corporation that was required to set aside money for redeeming or buying back some of its bonds payable.
A sinking fund has a very important purpose. The purpose of a sinking fund is to reduce the amount of debt by repaying or purchasing outstanding loan amounts.
A sinking fund approach is a type of economic approach that involves setting aside some profits over time. This money is often set aside to fund large capital expenses.
Sinking fund is the setting aside of money for instance by the government to a pool to reduce its budget deficit while amortization is the paying off of debts over a period of time with a decreasing principal balances and interests Read more in related link.
Sinking fund method is a method of depreciation if a large sum of money is required for replacement of an asset at the end of its effective life it may not be advisable to leave in the amount of depreciation set apart annually, for it may or may not be available in the form of the readily realisable assets to the concern at the time it is required. To safegaurd this position the amount annually provided for depreciation may be placed to the credit of the sinking fund account
A bond sinking fund is a restricted asset of a corporation that was required to set aside money for redeeming or buying back some of its bonds payable.
A sinking fund has a very important purpose. The purpose of a sinking fund is to reduce the amount of debt by repaying or purchasing outstanding loan amounts.
A sinking fund approach is a type of economic approach that involves setting aside some profits over time. This money is often set aside to fund large capital expenses.
Sinking fund is the setting aside of money for instance by the government to a pool to reduce its budget deficit while amortization is the paying off of debts over a period of time with a decreasing principal balances and interests Read more in related link.
A bond sinking fund is reported in the section of the balance sheet immediately after the current assets. The bond sinking fund is part of the long-term asset section that usually has the heading "Investments." The bond sinking fund is a long-term (noncurrent) asset even if the fund contains only cash. The reason is the cash in the fund must be used to retire bonds, which are long-term liabilities. In other words, because the money in the bond sinking fund cannot be used to pay current liabilities, it must be reported outside of the working capital section of the balance sheet. (Working capital is current assets minus current liabilities.)
sinking fund is the setting aside of money for instance by the government to a pool to reduce its budget deficit while amortisation is the paying off of debts over a period of time with a decreasing principal balances and interests
example of sinking fund
The Fund Manager is the person who invests the funds Assets Investors invest in the Fund to create the Assets that will be invested by the Fund Manager
future value of an annuity is a reciprocal of a sinking fund
Sinking fund method is a method of depreciation if a large sum of money is required for replacement of an asset at the end of its effective life it may not be advisable to leave in the amount of depreciation set apart annually, for it may or may not be available in the form of the readily realisable assets to the concern at the time it is required. To safegaurd this position the amount annually provided for depreciation may be placed to the credit of the sinking fund account
A sinking fund is a fund established by a government agency or business for the purpose of reducing debt by repaying or purchasing outstanding loans and securities held against the entities. It helps keep the borrower liquid so it can repay the bondholder. It is just like a reserve fund which is used for repayment of loan.
Mutual fund assets continued to increase rapidly in 1996