Touch Tronix, Inc $€ 880,000$ Terms of the Sale Were 2/10, Net 30

question 109

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) Assets decreased by \( € 880,000 \).
• B) Assets increased by \( € 17,600 \).
• C) Liabilities decreased by \( € 862,400 \).
• D) Liabilities decreased by \( € 680,000 \).

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Definitions:

National Wealth

The total value of all financial and physical assets owned by a country, minus any liabilities.

Corporal Punishment

The use of physical force with the intention of causing a child to experience pain, but not injury, for purposes of correction or control.

Pedagogic Violence

The use of power and authority in educational settings in a way that negatively affects students' well-being and learning.

Educational Attainment

The highest level of education an individual has completed, often measured in formal education degrees or certificates.