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

question 40

Multiple Choice

Touch Tronix, Inc. sells component parts to Advanced Communications, Inc. a cell phone manufacturer. During December 10, 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 receives 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 and the income statement for Touch Tronix, Inc. at December 31, 2011?

• A) Assets will decrease by \(€ 50,000\) and income will decrease by \(€ 50,000\).
• B) Assets will decrease by \(€ 170,000\) and income will decrease by \(€ 170,000\).
• C) Assets will increase by \(€ 170,000\) and income will decrease by \(€ 170,000\).
• D) Assets will increase by \(€ 220,000\) and income will decrease by \(€ 220,000\).

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Definitions:

Deep Breathing

A relaxation technique involving intentional, deep inhalations and exhalations, which can reduce stress and improve lung function.

Mind-body Techniques

Practices that focus on the interactions between the brain, mind, body, and behavior to use the mind's capacity to affect physical health.

Yoga Practice

A physical, mental, and spiritual discipline originating in ancient India, involving specific body postures, breathing techniques, and meditation for health and relaxation.

Controlled Breathing

A technique involving conscious, intentional regulation of breath to improve physiological and psychological well-being, often used in stress management.