Jumping Jellyfish Corporation is a Canadian business that is indebted to a number of persons and entities.On January 2,2003,the accountant of Jumping Jellyfish examines the books and makes the determination that the current debts of the corporation total $2 million,and the assets and cash total only $200 000.The accountant concludes that the corporation will be unable to pay its debts as they become due.The corporation is

Question

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The accountant's determination that the corporation cannot pay its debts as they become due indicates insolvency. However, bankruptcy is a legal process that involves a court declaring a person or business insolvent and appointing a trustee or receiver to handle the debts and assets. Since there is no mention of a court involvement or appointment of a trustee or receiver, the best choice is B: insolvent.

Jumping Jellyfish Corporation Is a Canadian Business That Is Indebted