A company is said to be insolvent when

COMMERCE
WAEC 1999

A company is said to be insolvent when

  • A. it makes a loss in any one year
  • B. its total liabilities exceed total assets
  • C. the ordinary shareholders recieve no dividend from the company
  • D. the preference shareholders could not be paid by the company

Correct Answer: B. its total liabilities exceed total assets



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