Section 1231 Property Generally Does Not Include Notes Receivable Arising

question 120

True/False

Section 1231 property generally does not include notes receivable arising in the ordinary course of business.

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Definitions:

Imposter Rule

A rule which holds that if one party obtains a negotiable instrument by impersonating another party and endorses it with the impersonated party’s signature, the loss falls on the drawer of the instrument.

Drawer

In financial terms, the person who writes or issues a check, directing a bank to pay the stated amount from the drawer's account.

Discharged Liability

The release or elimination of a debtor's obligation to pay a debt, typically occurring through bankruptcy proceedings.

Imposter Rule

A legal principle in trademark law that prohibits the use of a mark or package that is deceptively similar to an established trademark, potentially misleading consumers.