Your client is insolvent under the federal bankruptcy law. Under the circumstances

a. So long as the client can meet current debts or claims by its most aggressive creditors, a bankruptcy proceeding is not possible.

b. Your CPA firm need not disclose such information—that is, insolvency—in the financial statements so long as you are convinced that the problem is shortlived.

c. A transfer of assets to a creditor less than 90 days before filing a petition may be voidable.

d. Your client cannot file a voluntary petition for bankruptcy.