A company must report financial difficulties if its liabilities exceed which measure?

The correct answer is that a company must report financial difficulties if its liabilities exceed its assets. This situation is often indicative of insolvency, which is a critical financial state where a company's obligations surpass its resources. The relationship between liabilities and assets is fundamental to assessing a company's overall financial health. When liabilities exceed assets, it suggests that the company may not have sufficient resources to fulfill its debts, thereby necessitating regulatory reporting to provide transparency to stakeholders, including investors and creditors.

In the context of the other options, revenues reflect income generated from sales and services, insurance premiums relate specifically to income earned from insurance policies, and net income is the profit after expenses have been deducted from revenues. While all these measures are important in assessing a business's performance, they do not directly relate to the fundamental measure of solvency, which is strictly concerned with the balance between a company’s liabilities and assets. This focus on the balance sheet is critical for understanding the financial stability of an organization.