(a) There are three elements to the accounting equation. Define each of these elements with the use of one example for each element. (6 marks)

(b) Explain how the accounting equation is expanded when a business starts making a profit. (2 marks)

(c) Discuss the difference between cash and profit using at least two appropriate examples. (7 marks)

(d) Explain what is meant by net book value. Support your answer with an appropriate and sufficiently detailed example. Your example should use both words and numbers to demonstrate net book value. (5 marks)