0
A company can not still trade while insolvent. If a company does trade during this time the directors of the company can become responsible for the debts.
Wiki User
∙ 9y ago
Add your answer:
Earn +20 pts
When a company's liabilities exceed its assets it is considered to be what?
Insolvent
What's the relationship between current liabilities and current assets?
Solvency. A company is considered solvent if it's current assets exceed it's current liabilities. A company is considered to be insolvent if their current liabilities exceed their current assets.
What is trade receivable?
The term trade receivable refers to the amounts due to a business following the sale of goods or services to another company. It is a subcategory of Accounts Receivable. Trade receivables are considered a current asset on a company's balance sheet, as they can be readily converted into cash.
What accounting issues arise for a company as a result of engaging in international trade?
answer
What is the difference between trade receivables and creditors?
Trade receivable is that amount which is receivable from customers to whom company sold goods on credit while credits are those from whom company purchased goods on credit.
When a company's liabilities exceed its assets is considered to be?
Insolvent
When a company's liabilities exceed its assets it is considered to be what?
Insolvent
Can a company be declared as insolvent under companies act 1956?
No. It can be wound up. In India, only individuals can be declared insolvent.
Who is an insolvent person?
An insolvent person is simpl someone whose liabilities far exceed their assets....they still controll the assets...like the money in a checking account
Can an insolvent person sign cheque?
An insolvent person is simpl someone whose liabilities far exceed their assets....they still controll the assets...like the money in a checking account.
Can minor be declared insolvent?
can minor be insolvent
What happens when stock price goes under 1?
the price will be in pennies going from 99 to 1pence. after that the company will be insolvent.
Who is an undercharged insolvent?
He is a person who discharges any functions in the company. He directly or indirectly takes part in the promotion or management of the company. Company may either in India or abroad. It may even be an unregistered company.
If my car has been repossessed can I still trade it in for a different vehicle?
No, you no longer have anything to trade (the car is now the property of the repo company not you).
Which country has an airline named Lithuanian airlines?
Lithuanian Airlines was a company of Lithuania; this company is insolvent from 17.01.2009 and don't exist now. Another company - Small Planets Airlines - is only for charters.
Does the executor's job become extinguished if an estate turns out to be insolvent?
No, the executor still has to inform the debtors of the insolvency. And taxes still have to be filed and the court satisfied.
what disadvantage of buying insolvent estates?
An insolvent estate is one with no value to it. The debts are greater than the assets. Therefore, it does not make sense to purchase an insolvent estate.
