Which one of the following terms refers to the termination of a firm as a going concern?
A)accounting insolvency
B)liquidation
C)technical insolvency
D)legal bankruptcy
E)reorganisation

Question

Quizplus · Accepted Answer

Liquidation is the process of selling off a firm's assets to settle its debts and distribute any remaining funds to its stakeholders. It is the termination of a firm as a going concern. Accounting insolvency refers to a situation where a company's liabilities exceed its assets, while technical insolvency refers to a situation where a company is unable to meet its financial obligations as they come due. Legal bankruptcy is a legal proceeding in which an individual or company is declared unable to repay their debts. Reorganization involves restructuring a company's operations and debt in order to keep it in business.

Which One of the Following Terms Refers to the Termination