A Contingency Is Defined by FASB Statement No

A contingency is defined by FASB Statement No. 5 as an

A) existing condition, situation, or set of circumstances involving uncertainty as to possible gain or loss to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur.
B) existing condition, situation, or set of circumstances involving uncertainty as to a possible loss to an enterprise that will ultimately be resolved when one or more future events occur or fail to occur.
C) event that will result in the requirement to record a liability if it can be shown that an asset is in danger of being lost to the enterprise and the company has no ability to avoid the loss.
D) uncertain event that must have a reasonable chance of occurrence and the amount must be reasonably determinable by the company.