The correct answer is: C. non-performing
A non-performing advance is an advance where payment of interest and/or repayment of installment of principal remain unpaid for a period of two quarters or more. It is considered a loss because the lender is unlikely to recover the
full amount of the loan.A doubtful advance is an advance where there is significant doubt about the borrower’s ability to repay the loan. It is not yet considered a loss, but the lender is at risk of not recovering the full amount of the loan.
A loss is an advance that is completely uncollectible. The lender has no hope of recovering any of the money that was loaned.
In conclusion, a non-performing advance is an advance where payment of interest and/or repayment of installment of principal remain unpaid for a period of two quarters or more. It is considered a loss because the lender is unlikely to recover the full amount of the loan.