Which of the Following Definitions Best Describes a Contingency

question 32

Multiple Choice

Which of the following definitions best describes a contingency?

• A) It is an event occurred in the past which resulted in heavy profits for the company.
• B) It is an event due to which a company identifies its competitive advantage.
• C) It is an event that might occur and must be planned for.
• D) It is an event occurred in the past which resulted in heavy loss for the company.

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Definitions:

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all revenues, gains, expenses, and losses.

Bonus Issue

An issue of shares to existing shareholders in proportion to their current shareholdings at no cost to the shareholders.

Ordinary Shares

Equity shares that represent a portion of a company's capital, entitling holders to vote and share in the profits.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some values.