Sinking Funds Usually Appear on the Statement of Financial Position

question 148

Multiple Choice

Sinking funds usually appear on the statement of financial position as:

• A) Current asset.
• B) Long-term investment.
• C) Current liability.
• D) Appropriation of retained earnings.

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Definitions:

Phenomenon

an observable event or fact, particularly extraordinary or remarkable, that can be scientifically described or explained.

Phi Phenomenon

The optical illusion of perceiving continuous motion between separate objects viewed in rapid succession.

Gestalt Psychology

A psychological approach that emphasizes the holistic and intrinsic properties of the mind's perception of the world, suggesting that the whole of anything is greater than its parts.

Gestalt

A theory of mind and brain that proposes that the operational principle of the brain is holistic, parallel, and analog, with self-organizing tendencies; or the idea that the whole is greater than the sum of its parts.