Thakur College of Science and Commerce Senior AML KYC Analyst Interview Questions and Answers

A sinking fund is a fund set up by a corporation to retire a bond issue before maturity.

• Sinking funds are used to ensure that a corporation has enough funds to repay its debt obligations.

• Money is periodically deposited into the sinking fund to accumulate until the bond's maturity date.

• The corporation then uses the funds in the sinking fund to buy back a portion of the outstanding bonds.

• Sinking funds can help reduce the...read more

Accruals are adjustments made to financial statements to reflect the recognition of revenues and expenses in the period they are earned or incurred, regardless of when cash is exchanged.

• Accruals are used to match revenues and expenses to the time period in which they are incurred, rather than when cash is exchanged.

• Accruals are necessary for accurate financial reporting and to provide a more realistic view of a company...read more