Question

The term "contingency fund" refers to:

• A. A fund created to meet unforeseen or emergency expenses
• B. A fund set aside for long-term investment plans.
• C. A reserve specifically for operational costs and salaries.
• D. Money allocated for marketing and promotional activities.

Answer 1

Answer:

A. A fund created to meet unforeseen or emergency expenses

• A contingency fund is an emergency fund that can be used to meet urgent and unforeseen expenditures that arise during the financial year.