The ability to pay debts as they become due. It is measured by the ratio of current assets to current liabilities, for example, with the acid test. Its opposite is insolvency.
« Back to Glossary IndexSolvency
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The ability to pay debts as they become due. It is measured by the ratio of current assets to current liabilities, for example, with the acid test. Its opposite is insolvency.
« Back to Glossary Index