Sofa So Good,Inc

question 19

Multiple Choice

Sofa So Good,Inc.signs a contract with a programmer for the development of software that will be developed,delivered and paid for in the next year.The signing of the contract:

• A) has no effect on the account equation.
• B) increases assets.
• C) increases liabilities.
• D) decreases stockholder's equity.

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Definitions:

Gulf War

A conflict in the early 1990s between Iraq and a coalition of countries led by the United States, following Iraq's invasion of Kuwait.

Eyewitness

A person who directly observes an event and can provide testimony or information about it.

Biased

A tendency to favor or lean towards a particular perspective, conclusion, or response, often in a way that is considered to be unfair or biased against other options.

Tapped

Accessing a resource or obtaining information from a specific source; also refers to gently striking something.