You know you are insolvent when

Question

Quizplus · Accepted Answer

Insolvency is a situation where a person or an organization is unable to pay off their debts as they become due. This is determined by comparing their assets (what they own) with their liabilities (what they owe). If their liabilities exceed their assets, they are said to have a negative net worth, which means they are insolvent. Therefore, the best choice is E, which states that your assets are less than your liabilities (B) and your net worth is negative (C). The other choices are not accurate definitions of insolvency.

You Know You Are Insolvent When