liquidity: An asset's property of being able to be sold without affecting its value the degree to which it can be easily converted into cash. solvency: The state of having enough funds or liquid assets to pay all of one's debts the state of being solvent.The cash flow statement is intended to provide information on a firm's liquidity and solvency, improve the comparability of different firms' operating performance, and to indicate the amount, timing, and probability of future cash flows.
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