Accounting 9706/01 May June 2009 | Cambridge AS Level Past Papers With Mark Scheme

1. Depreciation and asset management: Calculation of accumulated depreciation for asset disposal, straight-line depreciation charge for fixed assets, and adjustments for vehicle purchase errors in the motor expenses account.
2. Revenue recognition and inventory adjustments: Treatment of goods dispatched and sale or return goods in financial accounts, and prudence principle application for unrealized profits in inventory.
3. Partnership profit sharing and financial adjustments: Calculation of partner credits from net profit, adjustments for salary, and shared profits based on agreed ratios.
4. Financial statements and equity transactions: Calculation of trade debtors for financial statements, adjustments for share capital post-issue, and impacts of share sales on company balance sheet.
5. Liquidity and working capital analysis: Calculation of current ratio and net current assets, actions to improve liquidity ratio, and analysis of debtor turnover period based on sales.
6. Costing methods and break-even analysis: Determination of prime cost of production, calculation of margin of safety and break-even point, and analysis of overhead absorption rates in production cost management.