Which term describes payments accumulated over time to meet a future financial obligation?

The term that best describes payments accumulated over time to meet a future financial obligation is "sinking fund." A sinking fund is established by setting aside money systematically over a period, specifically to repay debt or replace expensive assets when needed. This approach allows entities to manage their future liabilities more effectively, ensuring that funds are readily available when the obligation comes due.

In contrast, amortization refers to the process of spreading the cost of an asset or loan repayment over time, rather than accumulating funds for a future use. Capitalization involves recognizing costs as an asset rather than an expense, which is not focused on the future funding of obligations. Investment yield refers to the income generated from an investment, which does not specifically relate to the accumulation of funds for meeting future obligations.