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:

Public Perceptions

The collective beliefs or opinions held by the general population about specific topics or issues.

Operant Conditioning

A learning process whereby behaviors are influenced by consequences, including reinforcement and punishment, as proposed by B.F. Skinner.

Fundamental Principle

A basic concept or underlying rule that is foundational to a system, theory, or scientific discipline, guiding thinking and action.

Favourable Consequences

Positive outcomes or rewards that are likely to encourage a particular behavior to be repeated.