Touch Tronix, Inc

question 3

Multiple Choice

Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2014, Touch Tronix, Inc. sold €1,020,000 of goods to Advanced Communications, Inc. on account for €1,320,000. Terms of the sale were 2/10, net 30. On December 18, 2014, Advanced Communications, Inc. paid the account in full. Advanced Communications, Inc. uses a perpetual inventory system. Which of the following is true regarding the impact on the statement of financial position for Advanced Communications, Inc. when the payment is made on December 18, 2014?

• A) Assets decreased by €1,320,000.
• B) Assets increased by €26,400.
• C) Liabilities decreased by €1,293,600. d Liabilities decreased by €1,020,000.

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Definitions:

Tort Law

A segment of law that addresses violations where one party's behavior causes injury or harm to another person, leading to civil legal liability.

Contributory Negligence

A legal doctrine that reduces or eliminates the plaintiff's right to damages if it's proven they contributed to their own harm.

Plaintiff

The person who begins a lawsuit by filing a complaint in the appropriate trial court of general jurisdiction.

Damages

Compensation claimed by or ordered to be paid to a party for loss or injury as a result of breach of contract, negligence, or other wrongful act.