Accounting 9706/01 May June 2008 | Cambridge AS Level Past Papers With Mark Scheme

1. Revenue versus capital expenditure: Importance in profit and loss account preparation and asset valuation.
2. Depreciation and net book value adjustments: Calculation of asset disposals and effects on financial statements.
3. Provision for doubtful debts and error corrections: Adjustments for bad debts, impact on profit and loss account, and reconciliation of sales ledger control account discrepancies.
4. Inventory valuation methods and financial impact: Inclusion of production costs in stock valuation, calculation of prime cost, and treatment of inventory in club accounts.
5. Capital and reserves adjustments: Effects of bonus and rights issues on share capital, revenue reserves, and the impact on dividends and financial position.
6. Costing and break-even analysis: Determination of break-even point, contribution analysis, and impact of changes in selling price and fixed costs on margin of safety and overall profitability.