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.


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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.