A sinking fund established for the purpose of paying off long term bonds would be recorded on the balance sheet as a cash equivalent.

Name: A sinking fund established for the purpose of paying off long term bonds would be recorded on the balance sheet as a cash equivalent.
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A sinking fund is typically classified on the balance sheet under investments or other assets, not as a cash equivalent, because it is earmarked for a specific future obligation rather than available for immediate cash needs.

A Sinking Fund Established for the Purpose of Paying Off