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Doug's Doodle Shop,specializing in Dog Supplies,signs a Contract with a Pet

Question 49

Multiple Choice

Doug's Doodle Shop,specializing in dog supplies,signs a contract with a pet groomer.Next month,the groomer will begin leasing a portion of Doug's store and provide grooming services.The signing of the contract:


A) has no effect on the accounting equation.
B) increases assets.
C) increases liabilities.
D) decreases stockholders' equity.

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