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When a company's liabilities exceed its assets, it is referred to as being "insolvent." This situation indicates that the company is unable to meet its financial obligations as they come due. Insolvency can lead to bankruptcy proceedings, where the company's assets may be liquidated to pay off creditors. It is a critical financial condition that requires immediate attention to avoid further financial deterioration.
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When a company's liabilities exceed its assets it is considered to be what?
Insolvent
What is called when a company's liabilities exceed its assets?
When a company's liabilities exceed its assets, it is referred to as being "insolvent." This situation indicates that the company may not be able to meet its financial obligations as they come due, which can lead to bankruptcy proceedings. Insolvency can be a critical warning sign of financial distress for a business.
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 what is it considered?
When a company's liabilities exceed its assets, it is considered insolvent. This means that the company does not have enough assets to cover its obligations, which may lead to bankruptcy if it cannot rectify the situation. Insolvency can indicate financial distress and may result in legal actions or restructuring efforts to address the imbalance.
Does a company whose current liabilities exceed its current assets have a liquidity problem?
Obviously yes
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
What is called when a company's liabilities exceed its assets?
When a company's liabilities exceed its assets, it is referred to as being "insolvent." This situation indicates that the company may not be able to meet its financial obligations as they come due, which can lead to bankruptcy proceedings. Insolvency can be a critical warning sign of financial distress for a business.
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.
If you have assets in your home can you be force to sell it if you file bankruptcy?
If the value of the assets greatly exceed the allowable exemptions, then yes they can be seized.
Which of the five Cs of credit require that a person's assets exceed his or her liabilities?
capacity
When a company's liabilities exceed its assets what is it considered?
When a company's liabilities exceed its assets, it is considered insolvent. This means that the company does not have enough assets to cover its obligations, which may lead to bankruptcy if it cannot rectify the situation. Insolvency can indicate financial distress and may result in legal actions or restructuring efforts to address the imbalance.
Am I responsible for my husband's debt in NY?
You do not have to do it out of your own pocket in New York. If you are the executor of the estate, yes, insomuch as there are assets to pay them with. If the debts exceed the assets, you may have to sell the house or other assets.
When a nation's exports exceed its import what is it called?
When a country' import exceed it's export is called Deficit then when a county's export exceed it import is called surplus.
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
Am I responsible in any way for my deceased husband's medical bills in OK?
Not directly, but indirectly. If you are the executor of the estate, yes, insomuch as there are assets to pay them with. If the debts exceed the assets, you may have to sell the house or other assets.
