Accounting 9706,32 Oct Nov 2024 | Cambridge AS - A Level Past Papers With Mark Scheme

1. Financial Statements Preparation | Preparation of the manufacturing account and statement of profit or loss, considering depreciation and production cost elements.

2. Depreciation & Cost Analysis | Explanation of why factory machinery depreciation is lower than the calculated 10%, and assessment of depreciation inclusion in factory profit calculation.

3. Cost & Pricing Adjustments | Calculation of the factory profit rate for the next financial year, considering increased labor costs and product buy-in price changes.

4. Partnership Accounting | Correct division of profits between periods, adjustment of capital and current accounts, and rectification of goodwill treatment.

5. Accounting Ethics & Professionalism | Evaluation of whether to appoint a new accountant due to discovered errors and conflicts of interest.

6. Financial Ratio Analysis & Investment Evaluation | Calculation of key financial ratios, including gearing ratio, earnings per share, and price-earnings ratio, and assessment of investment performance.

7. Solvency & Financial Stability | Identification of an additional solvency ratio affected by changes in gearing ratio and its implications for financial decision-making.