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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.
When a company's liabilities exceed its assets it is considered to be what?
Insolvent
Does a company whose current liabilities exceed its current assets have a liquidity problem?
Obviously yes
What is the word for an excess of liabilities over assetts?
The term for an excess of liabilities over assets is "negative equity." This situation occurs when a company's or individual's total liabilities exceed their total assets, indicating financial distress. In personal finance, it can also be referred to as being "underwater" or "insolvent."
How can you tell the financial standing from assets and liabilities?
Logically, your liabilities taken away from your assets would show you your financial standing: assets - liabilities = how much money you have If your liabilities are greater than your assets, your answer will be negative and you're in debt. If your assets are greater than your liabilities, your answer will be positive and you have enough assets to get rid of your liabilities.
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.
When a company's liabilities exceed its assets it is considered to be what?
Insolvent
When a company's liabilities exceed its assets is considered to be?
Insolvent
Which of the five Cs of credit require that a person's assets exceed his or her liabilities?
capacity
Does a company whose current liabilities exceed its current assets have a liquidity problem?
Obviously yes
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
How can you tell the financial standing from assets and liabilities?
Logically, your liabilities taken away from your assets would show you your financial standing: assets - liabilities = how much money you have If your liabilities are greater than your assets, your answer will be negative and you're in debt. If your assets are greater than your liabilities, your answer will be positive and you have enough assets to get rid of your liabilities.
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.
What are assets and liabilities reported on?
Assets and liabilities are reported on a balance sheet
Define the three components of the accounting equation?
The accounting equation is as follows: ASSETS = LIABILITIES + EQUITY
Can assets be greater then liabilities and owners equity?
No. Assets = Liabilities + Equity Always.
Assets equal liabilities?
Yes assets are equal to liabilities. As liabilities are source of financing either inform of equity or inform of debt. With help of liabilities (equity+debts) assets are financed.
