Accounting 9706/04 May June 2007 | Cambridge AS Level Past Papers With Mark Scheme

1. Partnership dissolution and asset transfer: Preparation of capital accounts for Abcan and Gurbo, calculation of partnership assets transferred to ABCOGH Ltd, and distribution of shares and debentures based on partnership agreements.
2. Financial statement preparation for Lopez Ltd: Trading and profit and loss account preparation, balance sheet formulation, and calculation of financial ratios such as dividend yield, dividend cover, and earnings per share (EPS).
3. Comparative financial analysis: Calculation of financial ratios for Lopez Ltd, comparison with industry benchmarks, and analysis of company performance using price earnings ratio and other profitability metrics.
4. Investment appraisal for supermarket leases: Calculation of net cash flows, accounting rate of return (ARR), and net present value (NPV) for two lease options (Supermarket A and B), considering additional costs and depreciation.
5. Decision-making based on financial metrics: Selection of supermarket lease based on NPV, discussion on internal rate of return (IRR), and analysis of cost of capital implications on project viability.
6. Cash flow projections and financial planning: Evaluation of cash flow forecasts, assessment of working capital requirements, and impact of lease costs on company financials and long-term investment decisions.