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What is the main difference between Liquidity & solvency?

MBA Finance Accounting Finance
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Question added by Chandralal Seneviratne , Finance Manager , FOOD PALACE W.L.L
Date Posted: 2017/04/29
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Ronaldo Moscosa CPA
by Ronaldo Moscosa CPA , Accountant , Madi Bin Askar Al Hajri Sons Co

Liquidity is the capacity of company to meet its short term obligation it is measured using liquidity ratios. While solvency is the capacity of a company to meet its long term obligation and is measured using solvency ratios 

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