A Judgment May Be Required to Post a Bond Protecting

question 24

Multiple Choice

A judgment may be required to post a bond protecting the judgment against any errors or improprieties that might occur when the property is seized and sold.

• A) creditor; debtor
• B) creditor; creditor
• C) debtor; creditor
• D) debtor; debtor

---

Definitions:

Exchange Notes

Financial instruments representing an agreement between parties to exchange interest payments or currency values over a set period.

Direct Write-off

An accounting method where uncollectible accounts receivable are written off directly against income at the time they are deemed irrecoverable.

Net Realizable Value

The estimated selling price of an item of inventory less any direct costs of disposal, such as sales commissions.

Allowance for Doubtful Accounts

A contra-asset account representing estimated uncollectible accounts receivable due to the customer's inability to pay.