Accounting 9706/02 May June 2006 | Cambridge AS Level Past Papers With Mark Scheme

1. Profit and loss account preparation: Calculation of gross profit, depreciation provisions, office and selling expenses adjustments, and final dividend proposals for Peter Jordan plc.
2. Balance sheet and liquidity ratios: Compilation of balance sheet, calculation of current ratio and acid test ratio, and explanation of their uses in evaluating liquidity and financial stability.
3. Bank reconciliation and financial management: Update of Netherdale Sports Club’s Receipts and Payments Account, preparation of bank reconciliation statement, and adjustments for unrecorded transactions.
4. Financial reporting for clubs: Preparation of Restaurant Trading Account, Income and Expenditure Account for the club, and reasons for the limitations of a Receipts and Payments Account in capturing the club’s financial activities.
5. Product profitability and break-even analysis: Analysis of profitability for Hoi Poloi plc’s products, calculation of selling price per unit, break-even points, and assessment of discontinuing a product based on financial performance.
6. Cost reduction strategies and profit improvement: Evaluation of cost savings from better quality raw materials, impact on labour costs, and calculation of projected profits if the cost reduction strategy is implemented.