A non-current asset or liability must be sold or paid within how many months?

A non-current asset or liability must be sold or paid within how many months?

• A. within 12 months
• B. within 6 months
• C. More than 12 months
• D. within 24 months

Answer: (C)

Non-current items are those that won’t be realized or settled within the next 12 months (or within the entity’s normal operating cycle, if longer). Because a non-current asset or liability is expected to take more than a year to realise or settle, the correct description is more than 12 months. Choices saying within 12 months would classify the item as current, and the other options don’t align with the standard 12-month boundary.

Non-current items are those that won’t be realized or settled within the next 12 months (or within the entity’s normal operating cycle, if longer). Because a non-current asset or liability is expected to take more than a year to realise or settle, the correct description is more than 12 months. Choices saying within 12 months would classify the item as current, and the other options don’t align with the standard 12-month boundary.