What are non-current assets?

Non-current assets are defined as resources that a company owns and expects to use in its operations for longer than one year. This includes items such as property, plant, equipment, intangible assets like patents, and long-term investments. The distinction is important because non-current assets are not intended for quick liquidation or conversion to cash; rather, they are utilized over time to generate revenue and support business activities.

The correct choice emphasizes that these assets will not be converted into cash or consumed within a year, highlighting their long-term nature and function within a business's operational framework. This classification is crucial for financial reporting, as it affects both the balance sheet and how a company's resources are managed and evaluated in terms of solvency and operational efficiency.

In contrast, options that refer to converting assets to cash within a year focus on current assets, while those mentioning annual cash flow might suggest a broader category that includes both current and non-current assets. The mention of assets held for resale pertains specifically to inventory, which is classified as a current asset. Hence, the accurate interpretation of non-current assets aligns well with the given definition in choice C.