Accounting 9706/22 May June 2013 | Cambridge AS Level Past Papers With Mark Scheme

1. Distinguishing businesses based on gross profit ratio, net profit ratio, and trade receivables turnover to identify a computer manufacturer versus a food wholesaler.

2. Preparing income statements and statements of financial position for comparative analysis between two businesses, including cost of sales, current assets, and liabilities.

3. Determining liquidity and its implications; evaluating which business faces higher liquidity risks and identifying critical financial ratios causing concern.

4. Adjusting profit for a sole trader with corrections for depreciation, damaged inventory, and omitted transactions; calculating corrected capital and goodwill valuation.

5. Analyzing partnership financial arrangements, including capital accounts, interest on drawings, and profit-sharing agreements based on residual profits.

6. Calculating break-even points, margin of safety, and contribution per unit for multi-product businesses; assessing production constraints due to material shortages and their impact on forecasted profit.