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.