Which of the Following Is a Section 1231 Asset

question 43

Multiple Choice

Which of the following is a Section 1231 asset?

• A) Business inventory
• B) Business accounts receivable
• C) Supplies used in a business
• D) None of these choices are Section 1231 assets

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Definitions:

Disaffirmance

The legal right of a minor to renounce a contract, thereby being freed from any contractual obligations.

Duty

A legal or moral obligation to act or refrain from acting in a certain way.

Sale of Goods

A commercial transaction involving the transfer of ownership of tangible personal property from a seller to a buyer for a price.

Disaffirm

The legal act of renouncing or repudiating a contract or agreement, particularly in cases where one party lacks the capacity to enter into the contract.