Of the following, __________ does NOT necessarily indicate financial distress.
A) Business failure.
B) Legal bankruptcy.
C) Technical insolvency.
D) Accounting insolvency.
E) An involuntary bankruptcy petition.

Question

Quizplus · Accepted Answer

Accounting insolvency refers to a situation where a company's liabilities exceed its assets on the balance sheet, but it does not necessarily mean the company is unable to meet its financial obligations or is in financial distress.

Of the Following, __________ Does NOT Necessarily Indicate Financial Distress