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Which of the following situations describes a person who could be insolvent? Multiple Choice O Assets $56,800; annual expense
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Answer #1

In Option B & C, They are havingpositive net worth, it means they are not insolvent.

Option D has negitive Net worth of $ 6700. It is less amount and can settle that.

OPtion E has Liability but he has regular CFs and can repay the same.

In Option A, Annual expenses are more than Assets. His assets are not sufficient to meet one Year expenditure itself.

Hence person in Option A has chance to get into insolvent.

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