Methodological aspects of assessing the solvency of business entities

UDC 658.14.17

Authors

Karzaeva N.N., Karzaeva E.A.

Abstract

The article presents a model for assessing the predicted solvency of business entities based on the monetary approach. The authors substantiate the need to use the indicators of generated cash inflow and liabilities that are to be repaid in the same period for calculating the solvency indicator, which are comparable within the study period. The forecast solvency model is built on the operating activities of an economic entity as the ratio of the planned cash inflow and outflow taking into account the deferral of payments provided in accordance with the financial policy.

Keywords

indicator, solvency, cash flow, forecasting, deferral, payment, accounts receivable, accounts payable.