Touch Tronix, Inc

question 231

Multiple Choice

Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. During December 2014, Touch Tronix, Inc. sold €1,020,000 of goods to Advanced Communications, Inc. on account for €1,320,000. Advanced Communications, Inc. was dissatisfied with 25% of the merchandise it received due to inferior quality. On December 21, 2014, Advanced Communications, Inc. returns the goods to Touch Tronix, Inc. for credit. Which of the following is true regarding the statement of financial position for Advanced Communications, Inc. at December 31, 2014?

• A) Assets will increase by €255,000 and liabilities will increase by €255,000.
• B) Assets will decrease by €255,000 and liabilities will decrease by €255,000.
• C) Assets will decrease by €330,000 and liabilities will decrease by €330,000. d Assets will increase by €330,000 and liabilities will increase by €330,000.

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Definitions:

Pernicious Anemia

A type of anemia caused by an inability to absorb vitamin B12, leading to a reduction in red blood cell production.

Von Willebrand's Disease

A genetic disorder that leads to prolonged bleeding due to defective or low levels of von Willebrand factor, affecting blood clotting.

Blood Differential

A test that measures the percentage of each type of white blood cell present in the blood and helps diagnose various conditions and diseases.

WBCs

White blood cells, components of the immune system that defend the body against both infectious disease and foreign materials.