Which one of the following statements is correct in relation to presenting the financial position...

Liquidity represents cash holdings, while solvency is long-term profitability.

Liquidity is the ability to repay long-term financial commitments, whereas solvency is the ability to repay short-term commitments.

Solvency is the availability of cash over the long-term, while liquidity is the availability of funds over the short-term to meet financial commitments as they fall due.

Solvency is the availability of total assets over a long-term, while liquidity is the availability of total assets over the short-term to meet financial commitments as they fall due.

.