Accounting 9706/01 Oct Nov 2005 | Cambridge AS Level Past Papers With Mark Scheme

1. Share premium account usage and accruals: Permissible uses for share premium account balance, calculation of accruals for telephone expenses, and treatment of expenses as capital or revenue.
2. Depreciation and fixed asset revaluation: Provision for depreciation to charge fixed assets cost against profits, calculation of revaluation reserve balance, and impact of revaluation on financial statements.
3. Partnership asset transfer and share capital adjustments: Calculation of tangible assets transferred to a partnership, effects of bonus and rights issues on share capital, and analysis of post-issue share capital structure.
4. Working capital management and profitability analysis: Effects of changes in provisions for doubtful debts on current and acid test ratios, calculation of return on capital employed (ROCE), and analysis of profitability ratios like gross profit ratio.
5. Costing and contribution analysis: Calculation of contribution to sales ratio, break-even point adjustments due to changes in fixed costs and selling price, and understanding the importance of overhead absorption in unit cost determination.
6. Budgeting and variance management: Evaluation of budget impacts on profitability, reasons for adverse material usage variance, and application of marginal costing to calculate total contribution and profitability of products.