What term describes the ability to meet day-to-day expenditures?

The term that best describes the ability to meet day-to-day expenditures is liquidity. Liquidity refers to how easily assets can be converted to cash to cover short-term obligations and expenses. It is essential for individuals and businesses to maintain sufficient liquidity to ensure that they can pay their bills, make necessary purchases, and handle unexpected costs without facing financial distress. Having high liquidity means there are enough liquid assets available, such as cash or cash equivalents, to manage everyday financial needs effectively.

In this context, solvency refers more generally to the state of being able to meet long-term debts and obligations, rather than specifically relating to day-to-day expenditures. While solvency is important for overall financial health, liquidity is the more accurate term for covering immediate expenses. Other terms like bankruptcy are related to situations of insolvency and financial failure, while viability speaks to the capacity to continue operations effectively in the long term.