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  • Sinking Cost (AutoRecovered)

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    Nevin Koshy John
    10 views3 pages
    This document discusses sinking funds, which are funds set aside over time to repay debts. It compares sinking funds for wasting assets, which are used to replace assets as they deteriorate, to sinking funds for repaying liabilities. Key differences are that sinking funds for assets provide replacement funds for assets at the end of their useful lives, while sinking funds for debts provide funds to repay loans and debts at maturity. The document outlines advantages like ensuring funds are available when needed and disadvantages like opportunity costs of funds being tied up.

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    Sinking Cost (AutoRecovered).docx

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    This document discusses sinking funds, which are funds set aside over time to repay debts. It compares sinking funds for wasting assets, which are used to replace assets as they deteriorate, to sinking funds for repaying liabilities. Key differences are that sinking funds for assets provide replacement funds for assets at the end of their useful lives, while sinking funds for debts provide funds to repay loans and debts at maturity. The document outlines advantages like ensuring funds are available when needed and disadvantages like opportunity costs of funds being tied up.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views3 pages

    Sinking Cost (AutoRecovered)

    Uploaded by

    Nevin Koshy John
    This document discusses sinking funds, which are funds set aside over time to repay debts. It compares sinking funds for wasting assets, which are used to replace assets as they deteriorate, to sinking funds for repaying liabilities. Key differences are that sinking funds for assets provide replacement funds for assets at the end of their useful lives, while sinking funds for debts provide funds to repay loans and debts at maturity. The document outlines advantages like ensuring funds are available when needed and disadvantages like opportunity costs of funds being tied up.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 3

    An Assignment on Sinking Fund

    &
    Difference between Sinking Fund of Wasting
    Assets and Repaying a Liability

    REFERENCES

    CONTENTS
    Sl. No TITLE Pg. No
    1. Introduction 1
    2. Sinking Fund 2-3
    3. Uses of Sinking Fund 4
    4. Advantages & Disadvantages 5-7
    of sinking fund
    5. Sinking Fund for Wasting 8
    Assets
    6. Sinking Fund for Repaying 9
    Liabilities
    7. Difference between Sinking 10
    Fund for wasting assets and
    repaying liabilities
    8. Conclusion 11
    BIBLIOGRAPHY

     www.chime.com
     www.contentmoneyinstructor.com
     www.accountingtools.com
     www.yourarticlelibrary.com
     www.myaccoutingcourse.com
     www.corporatefinance.com
     www.playaccounting.com

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