A Person Who Is Unable to Pay Their Debts as and When

question 3

Multiple Choice

A person who is unable to pay their debts as and when they fall due is:

• A)Insolvent.
• B)Liquidated.
• C)Bankrupt.
• D)Broke.

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Definitions:

Rising prices

An economic phenomenon where the general level of prices for goods and services increases over a period.

Income taxes

Taxes levied by governments on individuals or entities' income.

FIFO

Stands for First In, First Out, an inventory valuation method where goods purchased or produced first are sold or used first.

Gross profit

The difference between revenue and the cost of goods sold (COGS), representing the profit made before deducting operating expenses.