An entity that does not have enough cash to meet its financial obligations as they fall due is said to be:

Question

Quizplus · Accepted Answer

Insolvent means that the entity cannot pay its debts on time and in full, which indicates a lack of liquidity. Dissolved and wound up both refer to the process of ending a company's operations, but do not necessarily indicate financial distress. Liquid refers to an entity's ability to easily convert its assets into cash, which may or may not be enough to meet its financial obligations.

An Entity That Does Not Have Enough Cash to Meet