Accounting 9706/03 May June 2002 | Cambridge AS Level Past Papers With Mark Scheme

1. Share redemption and capital adjustments: Calculation of capital redemption reserve and effects on net current assets and profit from debenture and share redemptions.
2. Goodwill and net asset valuation: Determination of goodwill arising from business acquisitions, calculation of increases in ordinary share capital, and evaluation of separable net assets' fair value.
3. Financial statement disclosures and accounting standards: Requirements for accounting policy disclosures, components of directors’ reports, and disclosure rules for financial statement notes.
4. Financial ratios and gearing impact: Calculation of return on shareholders' funds, price/earnings ratio, dividend per share based on appropriate cover, and effects of asset revaluation on gearing and return on capital.
5. Costing and profitability analysis: Evaluation of product profitability under resource constraints, ranking of products for profit maximization, and analysis of impact on production costs from material shortages.
6. Budget preparation and variance analysis: Selection of appropriate budget type for financial planning, calculation of raw material purchases for production, impact of cash deficiency on operations, and analysis of standard overhead cost per unit and efficiency variances.