Choose the Word or Phrase in [ ] Which Will

question 144

Short Answer

Choose the word or phrase in [ ] which will correctly complete the statement. Select A for the first item, B for the second item, and C if neither item will correctly complete the statement.
-When your liabilities exceed your assets,you are [solvent | insolvent].

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Definitions:

Available-For-Sale Securities

Financial instruments that are not classified as held-to-maturity or trading securities, and are instead intended to be sold for reasons other than temporary declines in value.

Unrealized Gain

The potential profit that exists on paper resulting from an investment that has not yet been sold for cash.

Loss Account

An account that records the expenses that exceed revenues, indicating a negative financial performance over a period.

Debt Investments

Investments in government and corporation bonds.