What is a characteristic of non-current assets?

Non-current assets are characterized by their long-term nature, meaning they are usually expected to provide economic benefits for more than one year. This category includes assets such as property, plant, and equipment, long-term investments, and intangible assets like patents or trademarks. The distinction of being "non-current" signifies that the company does not anticipate converting these assets into cash or liquidating them within the next year.

The focus on a longer-term holding period is crucial not only for financial statements but also for understanding a business's capital structure and investment strategy. This characteristic highlights how non-current assets contribute to the company's ability to generate revenue over time, in contrast to current assets, which are intended for short-term use and liquidity.