Accounting 9706/32 May June 2010 | Cambridge AS Level Past Papers With Mark Scheme

1. Cash flow and operating activities: Calculation of cash inflow from operating activities, impact of working capital changes, and profit adjustments for non-current asset disposals.
2. Partnership dissolution and equity adjustments: Distribution of remaining bank funds among partners, adjustments for goodwill and revaluation in capital accounts, and calculation of capital redemption reserve.
3. Equity transactions and shareholder funds: Effects of bonus issue on shareholder funds, calculation of purchase price for net assets, and valuation of shares post-acquisition.
4. Profit adjustments and retained earnings: Calculation of adjusted profit after accounting for adjusting and non-adjusting events, determination of retained earnings balance post-dividend payments.
5. Gearing ratio and equity valuation: Calculation of earnings per share, valuation of shares based on expected return, and determination of gearing ratio based on loan capital and total capital employed.
6. Costing methods and variance analysis: Calculation of break-even sales revenue, contribution maximization based on limiting factors, overhead absorption rate determination, and evaluation of budget variances for production costs.