Accounting 9706/13 May June 2016 | Cambridge AS Level Past Papers With Mark Scheme

1. Valuation of inventories applying the prudence concept, comparing cost and net realizable value.

2. Correcting errors in trade payables and sales ledger control accounts, addressing discrepancies in discounts, bad debts, and journal postings.

3. Calculation of profit and adjustments, including doubtful debt provisions, depreciation undercharges, and misclassified accruals or prepayments.

4. Identification of direct and indirect costs for cost allocation methods, including absorption costing and overhead recovery based on machine hours.

5. Financial ratio implications of liquidity and working capital changes due to transactions such as inventory purchases or bank balance dividends.

6. Cost-volume-profit analysis, including margin of safety, break-even calculations, and profit determination for varying production levels.