non-performing asset

Definition

Banking euphemism for a loan that's gone bad and isn't generating income anymore, like a car that won't start but you still owe payments on. It's the financial equivalent of politely calling a disaster a "challenge."

Example Usage

The bank's portfolio of non-performing assets grew significantly, which is corporate-speak for "a bunch of people stopped paying us back."

Source: Banking and credit terminology

Related Terms

Intermediate

Segment Reporting

Breaking down financial results by business unit, geography, or product line to show which parts of the company are actually making money. It's where corporate winners and losers get exposed despite management's attempts at averaging.

💰 Finance / Accounting

Advanced

layering

In trading, placing multiple buy or sell orders at different price levels to either manipulate apparent market depth or genuinely scale in/out of positions. Context determines whether it's strategy or securities fraud.

💰 Finance / Accounting

Beginner

prepaid expenses

Payments made in advance for goods or services to be received in future periods, recorded as assets until consumed. It's money you've spent that accountants insist you haven't actually spent yet.

💰 Finance / Accounting

Intermediate

treasury

Where governments and large organizations stash their cash and valuables, or the department responsible for managing all that money. In corporate settings, it's the team that handles cash flow, investments, and debt—basically the company's personal bank manager. Also refers to government bonds, because apparently one word should mean seventeen different things.

💰 Finance / Accounting

Beginner

General Ledger

The master accounting record containing all financial transactions, organized by account. It's the single source of truth for a company's finances, assuming someone entered everything correctly.

💰 Finance / Accounting

Intermediate

intangible

Assets you can't drop on your foot but can definitely put on a balance sheet—think patents, trademarks, goodwill, and brand value. These incorporeal treasures represent value that exists purely in the realm of ideas, agreements, and legal rights. Accountants love arguing about how to value them since you can't exactly take them to a pawn shop.

💰 Finance / Accounting

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