Deficit Net Worth

Deficit Net Worth
Deficit Net Worth, also known as negative net worth, occurs when a company's liabilities exceed its assets and capital stock, often due to operating losses.
Impaired Capital
Impaired Capital refers to the situation where a company's total capital is less than the stated or par value of its capital stock, indicating financial difficulties or ongoing losses.
Negative Net Worth
Negative Net Worth, also referred to as Deficit Net Worth, occurs when an individual's or a company's liabilities exceed their assets. This financial condition indicates that the value of obligations outweighs the owned resources.

Accounting Terms Lexicon

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