CASE STUDY REGARDING THE CAUSES OF A COMPANY'S INSOLVENCY STATE
The main criteria underlying the determination of insolvency and therefore of bankruptcy are: lack of solvency and level of indebtedness. In order to dertmine the causes of insolvency (insufficient monetary reserves to pay outstanding debts), an analysis shoudl be performed regarding the economic an...
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Veröffentlicht in: | Quaestus (Timio̦ara) 2017-06 (11), p.184 |
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Hauptverfasser: | , |
Format: | Artikel |
Sprache: | eng |
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Zusammenfassung: | The main criteria underlying the determination of insolvency and therefore of bankruptcy are: lack of solvency and level of indebtedness. In order to dertmine the causes of insolvency (insufficient monetary reserves to pay outstanding debts), an analysis shoudl be performed regarding the economic and financial situation of the company on several level, namely: Analysis of the patrimonial state based on the balance sheet; Analysis of the financial balance; Analysis of revenues, expenditures and results, based on the data from the profit and loss account. |
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ISSN: | 2285-424X 2343-8134 |