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5. Assume that Fossil sold watches to a department store on account for $48,000. How...

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Accounting

5. Assume that Fossil sold watches to a department store on account for $48,000. How would this transaction affect Fossils accounting equation?

Increase both liabilities and stockholders equity by $48,000

Increase both assets and liabilities by $48,000

Increase both assets and stockholders equity by $48,000

No effect on the accounting equation because the effects cancel out

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