solvency and liquidity (1 Viewer)

[k-la]

whats the difference???

 

[#23]

Off the top of my head, I think liquidity is the measure of the business if it can meet its short-term obligations while solvency is the measure of the business if it can meet its long-term obligations.

 

[goan_crazy]

Jus in short: liquidity-ability to meet short term[i/] obligations as they fall due
solvency-the ability of the biz to meet its long term[i/] obligations
so thats liq-short
solv-long