Contingency

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Related to Contingency coefficient: contingency table

Contingency

An additional amount or percentage added to any cash flow item (ie. Capex). Care is needed to ensure it is either to be spent or to remain as a cushion.

Contingency

A negative situation that may occur and for which one ought to prepare. For example, a company may maintain extra cash reserves to cover unexpected liabilities. See also: Cushion.
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