Touch Tronix, Inc

question 75

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)Cash decreased by €666,400.
• B)Inventory decreased by €13,600.
• C)Accounts payable decreases by €680,000.
• D)Inventory decreased by €17,600.

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Definitions:

Traffic Fatalities

Deaths resulting from accidents or collisions involving vehicles on roadways.

Alcohol

A chemical compound characterized by a hydroxyl group (-OH) attached to a carbon atom, commonly used in beverages for consumption, cleaning agents, and fuel.

Each Year

An expression referring to the occurrence of an event or the measurement of data on an annual basis.

Carcinogens

Substances or exposures that are known to lead to cancer formation in living tissues.