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.

Name: 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.
Brand: Quizplus
Rating: 4.9 (37 reviews)

Question

Quizplus · Accepted Answer

Sinking funds are set aside to repay long-term debt and are classified as long-term investments on the statement of financial position.

Sinking Funds Usually Appear on the Statement of Financial Position