All of the Following Are True with Respect to Sinking

Multiple Choice

All of the following are true with respect to sinking funds except:

A) Once the sinking fund is established, the company has no more responsibility to the debt.
B) A sinking fund is a cash fund that is restricted for retiring the debt of a company.
C) A sinking fund may be handled by a trustee or by the individual company.
D) A sinking fund may make the investment more attractive to investors.