Question:
What is the difference between cashflow and balance sheet insolvency?
Author: Kuba PastulaAnswer:
The cash flow insolvency test denotes that the debtor is unable to pay its debts as they fall due. The balance sheet insolvency test captures a debtor’s inability to pay its debts if its assets are less than its liabilities, taking into account its contingent and prospective liabilities
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Author
Kuba Pastula