The energetics and its effect on the alloying behavior of AgSn liquid alloys have been theoretically investigated with the clear aim to correlate bulk phenomenon with surface as well as physical properties. The grand partition function for the bulk and the surface have been solved in the framework of compound formation model with the application of quasi-lattice approximations to obtain analytical expressions for various thermodynamic, structural, physical, and surface parameters. An attempt has also been made to link surface phenomena with the bulk through surface tension and concentration fluctuations in the long-wavelength limit (S-cc(O)). The little explored area of viscosity and diffusion has also been discussed in the light of compound formation model. Our study reveals that the surface is quite enriched with Sn atoms at all bulk compositions.