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

question 82

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. Which of the following is true regarding the impact on the statement of financial position for Touch Tronix, Inc. When the payment is made on December 18, 2011?

• A) Assets decreased by \( € 880,000 \).
• B) Assets decreased by \( € 17,600 \).
• C) Assets increased by \( € 862,400 \).
• D) Assets decreased by \( € 13,000 \).

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Definitions:

Two Competitors

Refers to a situation where two companies are in direct competition with each other in the same market segment or industry.

Horizontal Merger

A business consolidation that occurs between firms that operate in the same industry, often aiming to create synergies and improve competitive position.

Cultural Integration

The process of blending and harmonizing different cultural practices, values, and norms within an organization or society.

Cultural Pluralism

A concept where small groups within a larger society maintain their unique cultural identities, and their values and practices are accepted by the wider culture provided they are consistent with the laws and values of the wider society.