nonperforming asset

nonperforming asset definition - business

nonperforming asset

An asset that produces no income. For example, a loan on which the borrower is not making payments is often described as a nonperforming asset by the lender. Firms often continue to include these assets, which are of questionable value, on their financial statements because they do not wish to show the losses entailed in writing them off. Also called nonperforming loan. Compare underperforming asset.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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