How is a non-current asset defined?

A non-current asset is defined as something owned and used by the business that is held for longer than 12 months. This classification includes assets such as property, plant, and equipment, which are essential for the company’s operations and are not expected to be converted into cash within a year.

Non-current assets are vital for long-term financial planning and investment strategy, reflecting the company's capabilities in generating revenue over an extended period. By holding these assets for more than 12 months, businesses can utilize them for ongoing operational needs, enhancing their service or production capacity.

The other options describe different asset types or characteristics that do not align with the definition of non-current assets. For example, something owned and used by the business that is turned to cash within 12 months would be a current asset and applicable to shorter-term liquidity considerations. Products available for sale in the short term would also be classified as current assets, while cash holdings represent the most liquid form of asset rather than an operational non-current asset.