Accounting 9706/01 Oct Nov 2008 | Cambridge AS Level Past Papers With Mark Scheme

1. Capital expenditure and asset revaluation: Classification of capital versus revenue expenditures, calculation of accumulated depreciation, and journal entries for asset revaluation.
2. Financial statement adjustments: Correction of loan classification errors, impact of closing stock undervaluation on net profit, and adjustments for interest receivable.
3. Partnership profit distribution and bonus shares: Calculation of profit appropriation among partners, effects of issuing bonus shares on reserves, and determination of share capital post-bonus and rights issues.
4. Inventory valuation and cost methods: Application of FIFO and AVCO methods for stock valuation, calculation of inventory value, and impact on financial statements.
5. Break-even analysis and absorption costing: Identification of fixed costs from break-even chart, benefits of absorption costing in total cost calculation, and evaluation of under-absorbed overheads.
6. Contribution analysis and decision-making: Calculation of contribution to sales ratio, determination of maximum price for outsourcing production, and analysis of contribution per unit for product profitability assessment.