Which of the following is the type of financial distress in which a firm's operating cash flows are not sufficient to pay its liabilities as they come due?
A) Business failure
B) Economic failure
C) Technical insolvency
D) Business extension

Question

Quizplus · Accepted Answer

Technical insolvency occurs when a company is unable to meet its financial obligations as they come due because its operating cash flows are insufficient.

Which of the Following Is the Type of Financial Distress