Legal Definitions - dead asset

A dead asset is an item that has no value and cannot be realized, such as an uncollectible account receivable. It is a worthless asset that cannot be converted into cash.

• An uncollectible debt owed by a customer is a dead asset because it cannot be collected and has no value.
• A piece of equipment that is broken and cannot be repaired is a dead asset because it cannot be used and has no value.
• A building that is condemned and cannot be sold or rented is a dead asset because it cannot generate income and has no value.

These examples illustrate how a dead asset is an item that has no value and cannot be realized. It is important for businesses to identify and remove dead assets from their balance sheets to accurately reflect their financial position.