Touch Tronix, Inc $€ 170,000$ And Liabilities Will Increase By $€ 170,000$

question 137

Multiple Choice

Touch Tronix, Inc.sells component parts to Advanced Communications, Inc.a cell phone manufacturer.During December 2011, Touch Tronix, Inc.sold €680,000 of goods to Advanced Communications, Inc.on account for €880,000.Advanced Communications, Inc.was dissatisfied with 25% of the merchandise it received due to inferior quality.On December 21, 2011, 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, 2011?

• A) Assets will increase by \(€ 170,000\) and liabilities will increase by \(€ 170,000\).
• B) Assets will decrease by \(€ 170,000\) and liabilities will decrease by \(€ 170,000\).
• C) Assets will decrease by \(€ 220,000\) and liabilities will decrease by \(€ 220,000\).
• D) Assets will increase by \(€ 220,000\) and liabilities will increase by \(€ 220,000\).

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Definitions:

Factual Information

Accurate data or details based on real events, facts, or evidence.

Value Ladder

A marketing concept that maps out a progression of products or services that increase in price and value, guiding customers through different levels of engagement.

Pillar

A fundamental component or structure that supports and adds strength or stability to a system, organization, or theory.

Social Media Optimization

The process of using social media networks to manage and grow an organization’s message and online presence.