Definition: Given the Question and Answer pair, detect whether the answer is acceptable or not. Denote acceptable answer as "yes", otherwise denote as "no". An acceptable answer is consistent with the context in question, detailed, long, and uses general knowledge of English. Answers that are not definite and suggest a variety of options are not acceptable answers.
Input: Question: In conversation sometimes I'll say something like this: What's that do? which uses "s" as a contraction for "does". Is this a "real" contraction, or is it incorrect usage of a contraction? 
Answer: According to Merriam-Webster and Dictionary.com, "what's" is short for: "what is" (What's the matter?) "what has" (What's happened to the car?) "what does" (What's that mean?) So it appears that "What's that do?" is grammatically correct. Merriam-Webster: what's Dictionary.com: what's.

yes