When the value of a firm's assets exactly equals the value of its debt, the firm:

A) Is economically bankrupt.
B) Is technically insolvent.
C) Is legally bankrupt.
D) Is in liquidation.
E) Is in default.

Technically Insolvent

A situation where an entity's liabilities exceed its assets, indicating it cannot currently meet its debt obligations with its available assets.

Firm's Assets

All the resources owned by a company, including cash, investments, property, and inventory, that have value and can be used to meet its financial obligations.

Firm's Debt

The total liabilities or financial obligations incurred by a company to finance its business operations and growth.