Which of the Following Situations Describes a Person Who Could

question 53

Multiple Choice

Which of the following situations describes a person who could be insolvent?

• A) Assets $56,000; annual expenses $60,000
• B) Assets $78,000; net worth $22,000
• C) Liabilities $45,000; net worth $6,000
• D) Assets $40,000; liabilities $55,000
• E) Annual cash inflows $45,000; liabilities $50,000

---

Definitions:

Reflection

The act of thinking deeply or carefully about something, often with the purpose of gaining better understanding or insight.

Impact

denotes the strong influence or effect something has on a situation, person, or object.

Action

The process or act of doing something, typically to achieve a goal or handle a problem.

Overwhelmed

A state of being where an individual feels unable to cope with the demands placed on them due to excessive stress or emotional burden.