Match the Following Independent Descriptions as Hot I

question 147

Multiple Choice

Match the following independent descriptions as hot i.e., ordinary income-producing) or nonhot assets with the following statements.
-Cash basis accounts receivable.

• A)Hot assets for purposes of distributions, liquidation of a partnership interest under § 736, and sale of a partnership interest.
• B)May be a hot asset for some but not all the purposes stated in a).
• C)Not a hot asset.

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Definitions:

Cashier's Checks

A check issued by a bank, drawn on its own funds and signed by a cashier, guaranteeing payment to the payee named on the check.

Issuing Banks

Financial institutions that provide cardholder services for credit, debit, or other payment cards, including the issuance of cards and management of the accounts associated with them.

Drawer's Signature

The signature of the person who writes a check or draft, legally binding the drawer to the terms of the document.

Re-Credit

The process of restoring funds to an account, typically after a return or correction of a billing error.