Accounting insolvency

Total liabilities exceed total assets. A firm with a negative net worth is insolvent on the books. The New York Times Financial Glossary

Financial and business terms. 2012.

Look at other dictionaries:

  • Accounting Insolvency — A situation where the value of a company s liabilities exceeds its assets. Accounting insolvency looks only at the firm s balance sheet, deeming a company insolvent on the books when its net worth appears negative. Accounting insolvency is a… …   Investment dictionary

  • accounting insolvency — Total liabilities ( liability) exceed total assets. A firm with a negative net worth is insolvent on the books. Bloomberg Financial Dictionary …   Financial and business terms

  • accounting insolvency — Econ, Fin the condition that a company is in when its liabilities to its creditors exceed its assets …   The ultimate business dictionary

  • insolvency practitioner — A person authorized to undertake insolvency administration as a liquidator, provisional liquidator, administrator, administrative receiver, or nominee or supervisor under a voluntary arrangement. Insolvency practitioners must be members of an… …   Accounting dictionary

  • insolvency — The inability to pay one s debts when they fall due. In the case of individuals this may lead to bankruptcy and in the case of companies to liquidation. In both of these cases the normal procedure is for a specialist, a trustee in bankruptcy or a …   Accounting dictionary

  • insolvency practitioner — inˈsolvency pracˌtitioner noun [countable] ACCOUNTING LAW in Britain, a person or organization that can by law act for a company that is declaring itself to be insolvent (= unable to pay its debts): • The company consulted an insolvency… …   Financial and business terms

  • Accounting scandals — Accounting scandals, or corporate accounting scandals, are political and business scandals which arise with the disclosure of misdeeds by trusted executives of large public corporations. Such misdeeds typically involve complex methods for… …   Wikipedia

  • insolvency administration order — A court order for the administration of the insolvent estate of a deceased debtor in bankruptcy …   Accounting dictionary

  • Accounting period — An accounting period is a period with reference to which United Kingdom corporation tax is charged. [Section 12 of the Income and Corporation Taxes Act 1988] It helps dictate when tax is paid on income and gains. An accounting period begins… …   Wikipedia

  • insolvency — The lack of adequate capital. The condition that exists when the amount of losses exceeds the amount of capital. See solvency and solvency risk. American Banker Glossary This occurs when individuals or businesses do not have enough assets to… …   Financial and business terms

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”

We are using cookies for the best presentation of our site. Continuing to use this site, you agree with this.