SECTION$-$ A

Note: Attempt all the questions. Each questions carries $1$ mark.

Q$-1-$ State the difference between cash and accrual basis of accounting.

Q$-2-$ If the trial balance shows a debit balance of $$60,000$ for Equipment and a credit balance of $$10,000$ for Accumulated Depreciation, what is the net book value of the Equipment?

Q$-3-$ Define Limited Liability Partnerships $($LLP$).$ Does LLP are legally allowed in Canada?

Q$-4-$ A customer pays Best Buy $$1,000$ on July $15,2024$ for a shipment in August. Has Best Buy earned revenue on July $15,2024?$ If not, when will Best Buy earn the revenue? Give suitable reasons to justify your answer Q$-5-$What is the effect on the balance sheet if a company pays off $$5,000$ of its Accounts Payable? $[1*5=5]$