SINKING FUND Definition

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SINKING FUND is a sum set apart periodically from the income of a government or a business and allowed to accumulate in order ultimately to pay off a debt. A preferred investment for a sinking fund is the purchase of the governments or firms bonds that are to be paid off. Usually the fund is administered by a trustee.

Learn new Accounting Terms

INFRASTRUCTURE is the resources (as personnel, buildings, or equipment) required for an activity.

CUSTODY is possession.

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