Accounting 9706/03 May June 2005 | Cambridge AS Level Past Papers With Mark Scheme

1. Cash flow and capital management: Calculation of net cash flow from operations, classification of cash inflows and outflows, and adjustments for non-cash items in cash flow statements.
2. Capital redemption and share transactions: Creation of capital redemption reserves, effects of premium on redemption of shares, and adjustments in share premium accounts following share issues and redemptions.
3. Asset valuation and goodwill accounting: Calculation of payment for goodwill in business acquisitions, adjustments for asset valuation losses, and implications of goodwill write-off on financial statements.
4. Financial ratios and performance indicators: Calculation of earnings per share (EPS), dividend yield, and gearing ratio from balance sheet data, with analysis of impacts on shareholder returns and company risk profile.
5. Overhead absorption and production cost analysis: Identification of causes for over-absorption of overheads, calculation of cost per equivalent unit in process costing, and minimum price determination for additional orders to break even.
6. Investment appraisal and budgeting: Evaluation of investment projects using net present value (NPV) technique, prioritization of budget factors in the budgeting process, and analysis of project acceptance based on cash flow metrics and profitability indicators.