What is a contingency?
A) An existing situation where certainty exists as to a gain or loss that will be resolved when one or more future events occur or fail to occur.
B) An existing situation where uncertainty exists as to possible loss that will be resolved when one or more future events occur.
C) An existing situation where uncertainty exists as to possible gain or loss that will not be resolved in the foreseeable future.
D) An existing situation where uncertainty exists as to possible gain or loss that will be resolved when one or more future events occur or fail to occur.

Question

Quizplus · Accepted Answer

A contingency is an existing situation where there is uncertainty regarding a possible gain or loss, and this uncertainty will be resolved when one or more future events occur or fail to occur. Option D perfectly describes this definition. Option A talks about certainty, which contradicts the definition of contingency. Option B talks about possible loss only, while option C talks about uncertainty that will not be resolved soon, which is not in line with the definition of contingency.

What Is a Contingency