Which of the Following Debts Would Be Discharged in Bankruptcy

question 5

Multiple Choice

Which of the following debts would be discharged in bankruptcy?

• A) A consumer credit loan for a stove
• B) Property taxes on a beach house
• C) Student loans
• D) Alimony payments past due

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Definitions:

Accounts Receivable

Money owed to a company by its customers for goods or services delivered or used but not yet paid for.

Allowance for Doubtful Accounts

A contra-asset account used to estimate the portion of receivables that may not be collectible.

Contra Asset

An account on a company's balance sheet that reduces the total amount of an asset, such as accumulated depreciation.

Normal Balance

In accounting, the normal balance is the side (debit or credit) of an account that is usually increased. For example, asset accounts normally have a debit balance, while liabilities and equity accounts have a credit balance.