Accounting 9706/01 May June 2007 | Cambridge AS Level Past Papers With Mark Scheme

1. Revenue and capital expenditure classification: Differentiation between revenue expenditures like factory repairs and capital expenditures like construction-related costs, and their impact on financial statements.
2. Depreciation methods and profit calculation: Use of reducing balance method for machinery depreciation, calculation of profit or loss on asset disposal, and adjustments for provision for doubtful debts.
3. Trial balance and ledger corrections: Effects of errors such as commission and omission on trial balance agreement, and adjustments in purchases ledger control accounts to rectify listed errors.
4. Partnership profit allocation and financial adjustments: Calculation of residual profits, interest on capital, and preparation of partnership profit and loss appropriation accounts for profit-sharing analysis.
5. Inventory valuation and cost adjustments: Application of accounting principles like prudence in inventory valuation, and calculation of stock values incorporating repair costs and estimated selling prices.
6. Break-even analysis and cost behavior: Calculation of break-even sales volume, effects of changes in activity levels on fixed and variable costs, and contribution margin per unit analysis for profitability assessment.