Touch Tronix, Inc $€ 680,000$ Of Goods to Advanced Communications, Inc $€ 880,000$

question 127

Multiple Choice

Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. On December 10, 2011, Touch Tronix, Inc. sold $€ 680,000$ of goods to Advanced Communications, Inc. on account for $€ 880,000$ . Terms of the sale were $2 / 10$ , net 30 . On December 18,2011 , 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 $18,2011 ?$

• A) Cash decreased by \(€ 666,400\).
• B) Inventory decreased by \(€ 13,600\).
• C) Accounts payable decreases by \(€ 680,000\).
• D) Inventory decreased by \(€ 17,600\)

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Definitions:

Commitment

Our intention to remain in a relationship.

Relationship

Connection established when one person communicates with another.

Passion

A very strong emotion or enthusiasm for something, typically driving intense dedication or interest.

Mania

A mental health condition characterized by periods of extremely high energy, euphoria, or irritability, often found in bipolar disorder.