Accounting 9706/23 Oct Nov 2014 | Cambridge AS Level Past Papers With Mark Scheme

1. Preparation of cash accounts and income statements for sole traders, incorporating adjustments for bad debts, depreciation, and prepayments or accruals.

2. Statement of financial position preparation, including classification of assets, liabilities, and calculation of capital balances for traders.

3. Calculation of liquidity ratios such as current and liquid (acid test) ratios, and evaluation of changes in liquidity over multiple periods.

4. Preparation of cash budgets for forecasting net cash flows, considering receipts, payments, loans, and interest expenses.

5. Use of marginal and absorption costing to prepare profit statements, with reconciliation between the two methods to explain profit differences.

6. Breakeven analysis and impact of fixed and variable costs on profitability, alongside evaluation of marketing campaign effectiveness through revised profit forecasting.