Difference between revisions of "Insolvent"

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'''Insolvent''' is when the total [[debt]] of an entity is greater than all of its [[equity]] ([[property]], [[asset]]s and [[account receivable]]s).  
 
'''Insolvent''' is when the total [[debt]] of an entity is greater than all of its [[equity]] ([[property]], [[asset]]s and [[account receivable]]s).  
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Sometimes an entity can avoid a forced [[liquidation]] and/or [[bankruptcy]] if it has demonstrated an ability to maintain a positive [[cash flow]].
  
 
==See also==
 
==See also==

Revision as of 15:58, 1 April 2013

Insolvent is when the total debt of an entity is greater than all of its equity (property, assets and account receivables).

Sometimes an entity can avoid a forced liquidation and/or bankruptcy if it has demonstrated an ability to maintain a positive cash flow.

See also

External links