Accounting 9706/12 Oct Nov 2015 | Cambridge AS Level Past Papers With Mark Scheme

1. Accounting for accrued income to prevent profit understatement and ensure accurate current liabilities.

2. Impact of prepayments and accruals on expense recognition, including adjustments for motor expenses, training costs, and rental.

3. Valuation of inventory using lower of cost and net realizable value, emphasizing prudence in financial reporting.

4. Correction of trial balance errors and suspense account management, maintaining ledger accuracy.

5. Calculation of overhead absorption rates and determination of total product costs using direct labor and machine hour bases.

6. Contribution margin analysis for production decisions, evaluating fixed and variable costs' impact on profitability.