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Simple English definitions for legal terms

balance-sheet test

Read a random definition: lex Baiuvariorum

A quick definition of balance-sheet test:

A balance-sheet test is a way to determine if a company is insolvent, which means they cannot pay their debts. This happens when a company's liabilities (what they owe) are more than their assets (what they own). Some states have laws that prevent a company from giving money to their shareholders if they are balance-sheet insolvent. This is different from equity insolvency, which is when a company cannot pay their debts as they become due.

A more thorough explanation:

Definition: The balance-sheet test is a measure of insolvency where a debtor's liabilities exceed its assets. This means that the debtor is unable to pay its debts as they fall due or in the usual course of business.

For example, if a company owes more money than it has in assets, it is considered balance-sheet insolvent. This can prevent the company from making distributions to its shareholders under some state laws.

Another type of insolvency is equity insolvency, which occurs when a debtor cannot meet its obligations as they fall due. This also prevents a corporation from making distributions to its shareholders under most state laws.

Overall, the balance-sheet test is an important measure of a company's financial health and ability to meet its obligations.

balance-sheet insolvency | bale

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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