Which of the Following Debts Is Not Subject to a Stay

question 34

Multiple Choice

Which of the following debts is not subject to a stay of proceedings even after a bankrupt has been discharged?

• A) Past maintenance for dependents
• B) Family loans
• C) Judgment debts
• D) Ordinary debt
• E) Unsecured loans

---

Definitions:

Bad Debt Expense

An expense reported on the income statement, reflecting the cost of accounts receivable that are not expected to be collected.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust for bad debts.

Direct Write-Off Method

An accounting practice that involves directly writing off an outstanding receivable if deemed uncollectible, impacting earnings directly.

Adjusting Entry

Journal entries made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.