Accounting 9706/21 Oct Nov 2013 | Cambridge AS Level Past Papers With Mark Scheme

1. Income statement preparation for a business, incorporating adjustments for depreciation, bad debts, and provisions for doubtful receivables.

2. Statement of financial position reflecting rent prepayments, revalued assets, and updated retained earnings.

3. Analysis of financial ratios, including gross profit ratio, inventory turnover, quick ratio, return on capital employed, and trade receivables turnover, with their formulas and implications.

4. Explanation of limitations of ratio analysis, such as the impact of inflation, differences in accounting policies, and non-financial factors.

5. Comparison of FIFO and AVCO inventory valuation methods, including adjustments for damaged inventory and their effect on reported profit.

6. Importance of distinguishing capital and revenue expenditures in financial statements, focusing on their impact on asset valuation and profit measurement.