For the Assertion (A) and Reason (R) below, choose the correct alternative.
Assertion: "Non Current Liabilities" are those liabilities which are not "Current Liabilities".
Reasoning: As per Companies Act., liabilities are of two types i.e. Non current liabilities and Current liabilities. Liabilities which are not Current liabilities are shown as Non Current Liabilities in the Balance Sheet.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Current and Non-current Classification: As per the Comapnies Act 2013, the items in Balance sheet in respect of assets and liabilities are to be shown under the heads s of current and non-current assets and current and non-current liabilities . The criteria for defining current assets and liabilities have been clearly spelled out with non-current assets and liabilities being the residual items.
Current/Non-current distinction.
An item is classified as current:
If it is involved in entity’s operating cycle
or, is expected to be realised/settled within twelve months or,
if it is held primarily for trading or,
is cash and cash equivalent or,
if entity does not have on unconditional rights to defer settlement of liability for at least 12 months after the reporting period,
Other assets and liabilities are non-current.