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:

Greenhouse Gases

Gases in Earth's atmosphere, such as carbon dioxide, methane, and water vapor, that trap heat and contribute to global warming.

Excessive Pollution

The presence of contaminants in the environment at levels that are harmful to living organisms and natural ecosystems.

Nonrenewable

Describes resources, such as fossil fuels or minerals, that cannot be replenished within a human lifespan when consumed.

Increased Methane

Increased methane refers to the rise in concentration of methane gas in an environment, which can significantly contribute to greenhouse gas effects and global warming.