There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion (A):  Non-current Liabilities are liabilities that are not Current Liabilities.
Reason (R): Liabilities are of two types, i.e., Non-current Liabilities and Current Liabilities. Liabilities that are not Current Liabilities are shown as Non-current Liabilities.

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

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 the liability for atleast 12 months after the reporting period,
 Other assets and liabilities are non-current.

LIABILITIES- Non-current Liabilities (a) Long-term borrowings (b) Deferred tax liabilities (net) (c) Other long-term liabilities (d) Long-term provisions 
                   Current Liabilities (a) Short-term borrowings (b) Trade payables (c) Other current liabilities (d) Short-term provisions