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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Solvency
What is solvency of a company?
It is a measure of how easily the company is able to pay its bills.
(If a company is not solvent (i.e. insolvent) then it means it is about to go bankrupt – that is owes more than it can afford to pay)
