A situation that arises when the total liabilities of a company to its creditors exceed its total assets. A firm in accounting insolvency is said to be with a negative net worth. However, accounting insolvency is determined by looking at a company’s books, i.e. by comparing the two sides of its balance sheet. Therefore, this type of insolvency differs from regular insolvency which refers to a company’s inability to repay its creditors.
Notice: Undefined variable: myString in /hermes/bosnacweb04/bosnacweb04ai/b1550/ipg.lantanasolutionsbh98965/fincyclopedia/wp-content/themes/independent/template-parts/post/content-single.php on line 41
Comments