Accounting 9706/23 May June 2013 | Cambridge AS Level Past Papers With Mark Scheme

1. Preparation of the manufacturing account for Eagle Manufacturing Limited, incorporating inventory changes, raw materials purchases, and allocation of overhead costs.
2. Creation of the income statement for the year, with detailed expense apportionments and depreciation adjustments.
3. Explanation of the impact of company losses on dividends for cumulative and non-cumulative preference shares, ordinary shares, and interest on debentures.
4. Calculation of financial ratios, including mark-up, inventory turnover, trade receivables turnover, current ratio, and acid-test ratio, with performance comparisons over two years.
5. Inventory valuation using FIFO and AVCO methods, including gross profit calculation and discussion of advantages and disadvantages of each method.
6. Assessment of the closing inventory value for Charlie, adjusted for post-period transactions, damaged goods, and mark-up calculations.