A person is said to be insolvent when he ceased to pay his. 
  • a)
    Damages 
  • b)
    Price 
  • c)
    Debts 
  • d)
    All of the above. 
Correct answer is option 'C'. Can you explain this answer?

CA Foundation Question

Aditi Kamra
Nov 30, 2018
Insolvency is the legal term describing the situation of a debtor who is unable to pay his, her, or its debts. There are two primary types of insolvency: cash flow and balance sheet.In cash flow insolvency, the debtor suffers from a lack of financial liquidity making it impossible to pay debts as they fall due. This is the type of insolvency most individuals experience prior to filing for bankruptcy.Balance sheet insolvency, on the other hand, involves having negative net assets, where one's liabilities exceed their assets. This is the form of insolvency normally described by corporate entities prior to filing for bankruptcy.

This discussion on A person is said to be insolvent when he ceased to pay his.a)Damagesb)Pricec)Debtsd)All of the above.Correct answer is option 'C'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of A person is said to be insolvent when he ceased to pay his.a)Damagesb)Pricec)Debtsd)All of the above.Correct answer is option 'C'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like A person is said to be insolvent when he ceased to pay his.a)Damagesb)Pricec)Debtsd)All of the above.Correct answer is option 'C'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.
This discussion on A person is said to be insolvent when he ceased to pay his.a)Damagesb)Pricec)Debtsd)All of the above.Correct answer is option 'C'. Can you explain this answer? is done on EduRev Study Group by CA Foundation Students. The Questions and Answers of A person is said to be insolvent when he ceased to pay his.a)Damagesb)Pricec)Debtsd)All of the above.Correct answer is option 'C'. Can you explain this answer? are solved by group of students and teacher of CA Foundation, which is also the largest student community of CA Foundation. If the answer is not available please wait for a while and a community member will probably answer this soon. You can study other questions, MCQs, videos and tests for CA Foundation on EduRev and even discuss your questions like A person is said to be insolvent when he ceased to pay his.a)Damagesb)Pricec)Debtsd)All of the above.Correct answer is option 'C'. Can you explain this answer? over here on EduRev! Apart from being the largest CA Foundation community, EduRev has the largest solved Question bank for CA Foundation.