Accounting 9706/04 May June 2002 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial ratios: interest cover, dividend cover, earnings per share, price earnings ratio, dividend yield, gearing.
2. Balance sheet restructuring: capital reduction, asset overvaluation resolution, goodwill write-offs, debt recovery, shareholder agreements.
3. Capital investment evaluation: net present value (NPV), internal rate of return (IRR), asset acquisition profitability assessment.
4. Budgeting and cost analysis: manufacturing, trading, profit-loss statements; break-even point, margin of safety, production and revenue variances.
5. Variance analysis: deviations in production quantity, sales volume, sales price, material usage, material cost, labor efficiency, labor rate.
6. Financial reconciliation: budgeted and actual profit linking through cost and performance analysis.