Accounting 9706/02 May June 2003 | Cambridge AS Level Past Papers With Mark Scheme

1. Trading and profit and loss account preparation: Calculation of gross profit, expenses, and net profit for Bracket & Racket Ltd for a six-month period, adjustments for depreciation, and provision for doubtful debts.
2. Balance sheet formulation and financial position: Compilation of Bracket & Racket Ltd's balance sheet as at 30 September 2002, reconciliation of creditors, debtors, stock, and bank overdraft with unpresented cheques.
3. Financing options and capital improvement: Identification of six possible sources of finance for improving premises, considering the refusal of loan or overdraft increase by the bank.
4. Financial performance ratios and analysis: Calculation of profitability, efficiency, and liquidity ratios for Greenyards Ltd and Poynder Ltd, comparing management performance across two years using key financial metrics.
5. Shortcomings of ratio analysis: Identification of six limitations or dangers of relying on ratio analysis for business decision-making, including potential distortions and lack of comprehensive insight into financial health.
6. Contribution and break-even analysis for product lines: Calculation of contribution per unit and percentage for different lock types produced by Angelicus & Co., determination of break-even points in units and dollars, and evaluation of the viability of continuing production for Domestic and Commercial locks.