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 determined that Jumping Jellyfish Corporation is unable to pay its debts as they become due, which means it is insolvent. However, the question does not provide enough information to conclude whether the corporation is actually bankrupt or not.

Jumping Jellyfish Corporation Is a Canadian Business That Is Indebted