Which of the following best describes a solvent?

The choice that best describes a solvent is one that signifies the ability to fulfill financial obligations. A solvent entity—such as an individual or corporation—can meet its debts as they come due. This term is often used in finance and accounting to indicate stability and capacity for maintaining obligations, reflecting a sound financial status.

The other options do not accurately represent the concept of being solvent. For instance, the first option implies financial liabilities, which is contrary to the definition of solvent. The second option describes insolvency, indicating a lack of ability to meet financial obligations, while the fourth option refers to a substance that cannot dissolve anything, which does not relate to financial contexts at all. Hence, the correct description of a solvent pertains specifically to its capacity for financial responsibilities, making the choice that indicates the ability to meet financial obligations the most appropriate and accurate.