Which of the following best describes a non-current liability?

A non-current liability is best defined as debt that is due for repayment over a period greater than 12 months. This classification helps distinguish between short-term and long-term financial obligations. In accounting, liabilities are categorized as current or non-current based on their repayment timelines. Current liabilities must be settled within one year, whereas non-current liabilities extend beyond that timeframe, indicating a longer-term financial commitment.

Understanding the distinction is crucial as it affects a company's financial statements and ratios, influencing assessments of liquidity and financial health. On the balance sheet, non-current liabilities typically include items such as long-term loans, bonds payable, and deferred tax liabilities, which clearly differentiate from current liabilities that will be settled in the shorter term.

The other options do not accurately represent non-current liabilities; they either refer to short-term obligations or assets, which are distinctly categorized under current liabilities or assets in financial reporting. Thus, recognizing the characteristics of non-current liabilities is essential for a well-rounded understanding of accounting practices.