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) Assets decreased by €880,000.
B) Assets increased by €17,600.
C) Liabilities decreased by €862,400.
D) Liabilities decreased by €680,000.
Correct Answer:
Verified
Correct Answer:
Verified
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