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Comment by kennend3

> First very simple point, to become insolvent you have to actually take a loss somewhere.

This has absolutely NOTHING to do with being insolvent.

"Insolvency

In accounting, insolvency is the state of being unable to pay the debts, by a person or company, at maturity; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency. "

Insolvency deals with the inability to repay your debts (insufficient cash flow is the most common).

parent kennend3 4 years ago

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