Define Non-Current assets.

Define Non-Current assets.

• A. Things kept longer than 12 months or not expected to be turned into cash by the end of that period
• B. Cash only
• C. Assets that are used up within a year
• D. Liabilities that require repayment

Answer: (A)

Non-current assets are long-term resources a business uses to operate and generate value, kept beyond the next 12 months or not expected to be turned into cash within that period. They include items like property, plant and equipment, long-term investments, and intangible assets. These assets provide benefits over several years and are often depreciated (except for land) to reflect their usable life. They differ from current assets, which are cash or assets likely to be used or converted to cash within 12 months. The description that aligns with non-current assets is the one that defines them as things kept longer than 12 months or not expected to be turned into cash by the end of that period. The other options either describe current assets (cash, or assets used up within a year) or liabilities, not assets.

Non-current assets are long-term resources a business uses to operate and generate value, kept beyond the next 12 months or not expected to be turned into cash within that period. They include items like property, plant and equipment, long-term investments, and intangible assets. These assets provide benefits over several years and are often depreciated (except for land) to reflect their usable life. They differ from current assets, which are cash or assets likely to be used or converted to cash within 12 months. The description that aligns with non-current assets is the one that defines them as things kept longer than 12 months or not expected to be turned into cash by the end of that period. The other options either describe current assets (cash, or assets used up within a year) or liabilities, not assets.