I'm doing a short insolvency course and have been struggling with a few of the questions, wonder if any of you could help me? They're multiple choice, but i'm having trouble deciding which is the correct answer.
1) Which of the following would be a debt under the definition of insolvency?
Monies being claimed by a contractor for work done
All other answers are correct
A judgement debt owed to a supplier
An action brought by a person who was a passenger in your car when you had an accident and is seeking damages for personal injury
Tossing up between a and c. I was fairly certain it was c but after googling i think maybe a could be a valid debt?
2) The decision of whether an entity is insolvent is a matter of applying the Cash Flow Test and assessing whether there are realisable assets that can be liquidated to meet the debtors obligations on time
True False
I think it's true but wondering if maybe this is an oversimplification?
1) Which of the following would be a debt under the definition of insolvency?
Monies being claimed by a contractor for work done
All other answers are correct
A judgement debt owed to a supplier
An action brought by a person who was a passenger in your car when you had an accident and is seeking damages for personal injury
Tossing up between a and c. I was fairly certain it was c but after googling i think maybe a could be a valid debt?
2) The decision of whether an entity is insolvent is a matter of applying the Cash Flow Test and assessing whether there are realisable assets that can be liquidated to meet the debtors obligations on time
True False
I think it's true but wondering if maybe this is an oversimplification?
