Accounting Insolvency

Business, Legal & Accounting Glossary

Definition: Accounting Insolvency

Accounting Insolvency

Full Definition of Accounting Insolvency

A situation in accounting in which a company’s liabilities exceed available assets on its balance sheet. Because the insolvency is determined by examining the balance sheet it is not considered regular insolvency, a situation in which a company is unable to pay off outstanding debt. When a company is found to have accounting insolvency it could be forced by creditors to restructure the business or declare bankruptcy.

Cite Term

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Page URL
Modern Language Association (MLA):
Accounting Insolvency. Payroll & Accounting Heaven Ltd.
December 04, 2021
Chicago Manual of Style (CMS):
Accounting Insolvency. Payroll & Accounting Heaven Ltd. (accessed: December 04, 2021).
American Psychological Association (APA):
Accounting Insolvency. Retrieved December 04, 2021
, from website:

Definition Sources

Definitions for Accounting Insolvency are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.