All of the Following Are True with Respect to Sinking

question 23

Multiple Choice

All of the following are true with respect to sinking funds except:

• A)Once the sinking fund is established, the company has no more responsibility to the debt.
• B)A sinking fund is a cash fund that is restricted for retiring the debt of a company.
• C)A sinking fund may be handled by a trustee or by the individual company.
• D)A sinking fund may make the investment more attractive to investors.

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Definitions:

Teratogen

From the Greek word tera, meaning “monster,” this term refers to any agent that causes a birth defect. Teratology is the field of study that investigates the causes of birth defects.

Prescription Drug

Medications that are legally dispensed only by a prescription from a licensed healthcare provider.

Some Depressants

Substances that decrease or slow down central nervous system activities, affecting mental and physical functions.

Teratology

The study of abnormalities of physiological development, focusing on the causes and biological processes behind birth defects.