Which One of the Following Is an Account Used to Provide

question 3

Multiple Choice

Which one of the following is an account used to provide for scheduled redemptions of outstanding bonds?

• A)redemption fund
• B)sinking fund
• C)liquidation account
• D)serial account
• E)callable account

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Definitions:

Utilization

The proportion of the available time that a system, machine, or service is operating or being used.

Break-Even Point

The production level or sales volume at which total revenues equal total expenses, resulting in neither profit nor loss.

Variable Costs

Costs that change in proportion to the level of production or sales activities, such as materials and labor.

Utilization

The extent to which a resource, such as equipment or labor, is used for its intended purpose, often expressed as a percentage.