A person whose assets are sufficient enough to meet business obligations is known as ___________ .

Solvent

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Insolvent

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Debtor

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Bad debt

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Solution

The correct option is A Solvent
The term solvency means that a company is able to pay its obligations when they come due and that a company is able to continue in business. Some people look to company's working capital in deciding whether a company is solvent. They conclude that a company with a positive amount of working capital is solvent. In other words a company that is solvent has more current assets than current liabilities.

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