Accounting 9706/11 Oct Nov 2009 | Cambridge AS Level Past Papers With Mark Scheme

1. Current liabilities and financial adjustments: Calculation of total current liabilities, adjustments for prepaid and accrued expenses, and implications of bank overdraft and trade creditors.
2. Revenue recognition and rental income: Treatment of rental income in profit and loss, identification of current asset or liability related to rental payments, and impact on financial statements.
3. Provision for doubtful debts and trade debtor balances: Calculation of provision adjustments, impact on profit, and determination of trade debtors after cash discounts and payments.
4. Inventory valuation and stock adjustments: Valuation of damaged stock in financial statements, LIFO method application in stock valuation, and calculation of unrealised profit in finished goods inventory.
5. Partnership profit distribution and capital adjustments: Interest on capital and drawings, calculation of net profit before appropriations, and adjustments for partners’ salaries and profit shares.
6. Financial ratios and equity transactions: Calculation of ordinary shareholders' funds, impact of rights issue on share capital and share premium, dividend yield determination, and assessment of break-even levels and absorption rates in costing methods.