Accounting 9706/12 May June 2011 | Cambridge AS Level Past Papers With Mark Scheme

1. Application of substance over form principle in accounting to ensure transactions reflect their economic reality rather than legal form.
2. Valuation of damaged inventory at lower of cost or net realizable value, ensuring accurate financial reporting under prudence principle.
3. Bank reconciliation for discrepancies between cash book and bank statement, incorporating unrecorded charges and uncleared cheques.
4. Effects of closing inventory overvaluation on overstated net current assets and profit from operations.
5. Calculation of net assets increase from share and debenture issuance, analyzing impact on financial position.
6. Overhead absorption and recovery analysis for production cost management, addressing under or over-recovered costs.
7. Prime cost computation including raw material usage, direct wages, and factory overheads for manufacturing.
8. Break-even and contribution analysis, identifying additional units required to offset increased fixed costs and maintain profit levels.
9. Depreciation charge reconciliation for non-current assets, adjusting for disposals and new acquisitions.
10. Trade receivables turnover calculation to measure efficiency in credit management and collection cycle.