Financial position refers to liquidity while financial condition is a much broader concept that includes not only financial position but consideration of long-term solvency.

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Financial position is generally thought to be a shorter-term concept, as is true with liquidity, while financial condition is a broader, long-range concept similar to solvency. The ICMA summarizes financial condition as a local government's ability to finance its services on a continuing basis.

Financial Position Refers to Liquidity While Financial Condition Is a Much