Accounting 9706/22 March 2024 | Cambridge AS Level Past Papers With Mark Scheme

1. Preparation of financial statements, including profit or loss and changes in equity, integrating adjustments for prepayments, depreciation, and accrued expenses.

2. Comparison of payment terms and supplier trade discounts to assess their impact on profitability and liquidity.

3. Depreciation of vehicles using the straight-line method, journal entries for asset disposals, and reasons for adopting the reducing balance method.

4. Revenue calculation based on inventory turnover and gross profit margin, along with cash management for personal drawings.

5. Application of absorption and marginal costing to determine selling prices, overhead absorption rates, and production profitability.

6. Strategic evaluation of production changes, assessing the financial and non-financial implications of reducing selling prices, increasing production, and investing in machinery.