Accounting 9706/04 May June 2009 | Cambridge AS Level Past Papers With Mark Scheme

1. Financial statement corrections and goodwill valuation: Adjustments for goodwill introduction, depreciation omission, recovery of bad debts, and corrections in profit and loss account and balance sheet for Frame-Patel plc.
2. Dividend and investment analysis: Calculation of dividend per share, dividend cover, and dividend yield. Comparison of ordinary shares versus debenture investment for Frame-Patel plc, assessing risks and returns.
3. Business closure and asset valuation: Evaluation of two options for Fodlast plc's section closure, including asset sale, liability settlement, redundancy payments, and managerial buyout, with financial implications for each scenario.
4. Contribution and variance analysis: Calculation of sales volume variance, price variance, total sales variance, raw materials usage and price variances, and direct labour efficiency and rate variances for Lim Ltd.
5. Budgeted contribution statement preparation: Calculation of budgeted contribution for Lim Ltd using original budgeted figures for sales, materials, and labour.
6. Variance explanations and connections: Analysis of reasons for sales volume variance, raw materials price variance, direct labour rate variance, and connection between raw materials usage variance and direct labour efficiency variance in Lim Ltd's operations.