Insolvency vs. Solvency — What's the Difference?
Difference Between Insolvency and Solvency
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Compare with Definitions
Insolvency
In accounting, insolvency is the state of being unable to pay the debts, by a person or company (debtor), at maturity; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency.
Solvency
Solvency, in finance or business, is the degree to which the current assets of an individual or entity exceed the current liabilities of that individual or entity. Solvency can also be described as the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.
Insolvency
The condition of being insolvent.
Solvency
Capable of meeting financial obligations.
Insolvency
An instance of being insolvent.
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Solvency
(Chemistry) Capable of dissolving another substance.
Insolvency
(finance) The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business.
The company faces insolvency.
Solvency
A substance in which another substance is dissolved, forming a solution.
Insolvency
Insufficiency to discharge all debts of the owner.
The insolvency of an estate
Solvency
A substance, usually a liquid, capable of dissolving another substance.
Insolvency
The condition of having more debts than assets.
Solvency
Something that solves or explains.
Insolvency
The condition of being insolvent; the state or condition of a person who is insolvent; the condition of one who is unable to pay his debts as they fall due, or in the usual course of trade and business; as, a merchant's insolvency.
Solvency
(finance) The state of having enough funds or liquid assets to pay all of one's debts; the state of being solvent.
Insolvency
The lack of financial resources
Solvency
The quality or state of being solvent.
Solvency
The ability to meet maturing obligations as they come due
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