Accounting 9706/03 Oct Nov 2007 | Cambridge AS Level Past Papers With Mark Scheme

1. Cash flow and taxation in financial statements: Calculation of total tax provision, cash outflows for taxation, and presentation of liabilities related to tax in the balance sheet.
2. Partnership admission and goodwill adjustments: Capital account changes for X, Y, and Z, calculation of goodwill upon new partner admission, and impacts on partnership capital structure.
3. Share redemption and capital reduction: Creation of capital redemption reserve to protect creditors' rights, calculation of reduction in share capital from capital restructuring schemes.
4. Gearing and investment valuation: Effects of gearing on financial ratios, evaluation of goodwill in business acquisitions, and determination of share premium from asset acquisitions.
5. Financial performance and variance analysis: Calculation of return on shareholders' funds, impact of bonus share issues on gearing, and analysis of price-earnings ratio to measure share performance.
6. Budgeting and flexible budget preparation: Preparation of flexible budgets to accommodate changes in production activity, calculation of material and labour variances, and evaluation of capital investment using NPV and discounting methods.