Accounting 9706/03 May June 2004 | Cambridge AS Level Past Papers With Mark Scheme

1. Cash flow statement classifications and operating cash flow: Classification of cash flow items under financing and investment, calculation of operating cash flow, and determination of taxation paid from financial statements.
2. Share capital transactions and capital reserves: Calculation of capital redemption reserve after redeeming preference shares, impact of convertible loan stock on ordinary share capital, and analysis of share capital increases from business acquisitions.
3. Financial reporting requirements and disclosures: Identification of required disclosures in the Profit and Loss Account, differentiation between exceptional and extraordinary items, and the impact of depreciation on published accounts.
4. Profitability and financial ratios: Calculation of price earnings ratio (P/E), dividend yield, and analysis of changes in interest cover and gearing from financial activities like debenture conversion.
5. Budgeting and profit maximization: Preparation of production budgets, ranking of products based on profitability under labour constraints, and evaluation of budgetary impacts on profit changes due to sales volume increases.
6. Investment appraisal and cost considerations: Assessment of special order costing based on material costs and usage, evaluation of flexible budgets, and determination of project viability using internal rate of return (IRR) and net present value (NPV) analyses.