QuestionIdentify which situation indicates a person is insolvent:
1. Assets \$56,400; expenses \$61,100
2. Assets \$78,400; net worth \$23,100
3. Liabilities \$45,400; net worth \$7,100
4. Assets \$40,400; liabilities \$46,100
Studdy Solution
Compare the assets and liabilities.
In this case, liabilities (\$46,100) are greater than assets (\$40,400), so the person is insolvent.
The situation that describes a person who could be insolvent is Assets \$40,400; liabilities \$46,100.
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