The inability to pay debts when they are due because liabilities far exceed the value of assets is called

Question

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Insolvency is the condition in which a person or company is unable to pay its debts due to the fact that their liabilities exceed the value of their assets. Liabilities refer to money owed, while assets refer to anything that an individual or company owns that has value. Net worth is the difference between an individual's assets and liabilities. Cash flow refers to the movement of money in and out of a business. Liquid assets are assets that can be easily converted to cash. Therefore, the best choice is B, Insolvency, because it accurately describes the situation of being unable to pay debts due to a lack of assets.

The Inability to Pay Debts When They Are Due Because