DIAGNOSIS OF FINANCIAL LIQUIDITY AND SOLVENCY - TOOL OF THE APPRECIATION OF THE ENTITY PAYING CAPACITY

Hada Izabela Diana, Mihalcea Mihaela Maria and Dohan (litan) Cristina Susana
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Hada Izabela Diana: 1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA
Mihalcea Mihaela Maria: 1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA
Dohan (litan) Cristina Susana: 1 DECEMBRIE 1918 UNIVERSITY OF ALBA IULIA

Annals - Economy Series, 2018, vol. SPECIAL, 187-192

Abstract: In the economic area that enables entities is often assailed by numerous changes: economically, socially, and financially. In a competitive environment entities must know resources to assess risks that may affect the activity, to fix the vulnerability in the face of the economic environment, to measure weaknesses, opportunities for development, thus leading to the smooth implementation of the objectives and the development of the enterprise. The main purpose of this article is to those out to the importance of diagnosis of the liquidity and financial solvency, as ameans of appreciation the payment capacity of the entity, both short-term and long-term. Research shows us that the diagnosis gives us a realistic view of the entity paying capacity by identifying strengths and weaknesses in terms of liquidity and solvency of the entity. The diagnosis of the two components constitutes a preventive measure against the risk of insolvency, to be used by policymakers for substantiation.

Keywords: solvency; liquidity; insolvency; the roleof the diagnosis; strengthsand weaknesses of paying capacity (search for similar items in EconPapers)
Date: 2018
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